Bengaluru: Ola Uber challenger Namma Yatri app to charge subscription fee from drivers

Namma Yatri

Namma Yatri, the auto-hailing app backed by the driver community of Bengaluru including the Autorickshaw Drivers Union (ARDU), will collect a subscription fee from drivers from September 1.

According to ARDU, drivers will have two options: pay Rs 25 for unlimited trips per day, or Rs 3.50 per ride (no charges after 10 trips).

Namma Yatri, an app developed by Juspay per standards defined by the Open Network for Digital Commerce (ONDC), was launched on November 1, 2022, as an alternative to Ola / Uber, as many drivers had expressed concern about aggregators charging around 30 percent commission.

“We have provided the Namma Yatri app free of charge all these months. However, this is not a commission It is a subscription fee. We need to maintain the app, cover expenses, and manage a customer care centre. We will begin collecting this subscription from drivers from September 1,” PL Pattabhiram, organising secretary of ARDU in Bengaluru, told Moneycontrol.

He said that drivers who undertake fewer trips and are not interested in the Rs 25 option can choose to pay Rs 3.50 per ride, which will become free on completing 10 trips.

"We announced in February 2023 that we would charge drivers a nominal subscription fee, and the same was updated on our website...Since then, we conducted extensive surveys to understand drivers’ preferences," said a spokesperson from Juspay-operated Namma Yatri replying to Moneycontrol's queries.

Within a week of launch, over 35,000 drivers have opted-in for the plans, and 7,500 completed the subscription process organically, Namma Yatri spokesperson said.

As part of an introductory offer, Namma Yatri has also launched a scheme enabling drivers to pay just Re 1 per ride throughout September, and around 6,000 drivers have already opted for it.

Pattabhiram said the union also plans to establish an auto drivers' welfare fund for their members.

Satya Arikutharam, an urban mobility expert who advises ARDU, said, "The subscription fee is a nominal expense to cover software and other overheads."

In an earlier interaction with Moneycontrol in April, Juspay cofounder Vimal Kumar had said that the company plans to introduce a subscription fee to be paid by auto drivers. He had said the fee could also be in the form of a per-ride charge, just like a commission.

The costs that Namma Yatri incurs include engineering, R&D, marketing, and even the cost of the maps used on the app. Google Maps is free for individuals but not for businesses. The plan is to use open-source apps, something they eventually will switch over to in order to save costs, Kumar had said.

However, some drivers are unhappy with this decision. "Initially, they assured us that they would not impose any charges. I'm worried whether they might eventually charge like other aggregators," said an auto driver on condition of anonymity.

“Everyone starts off by saying it is very beneficial to drivers, but at the end of the day, they start charging. Though Namma Yatri is still cheaper than what Ola and Uber levy,” said Prakash S, an auto driver who uses the app.

“We are not getting enough rides through Namma Yatri, so I’m doubtful if I will subscribe,” he added.

According to ARDU, 88,800 auto drivers have registered on the Namma Yatri app so far, serving around 17.2 lakh users. Since its launch on November 1, 2022, these drivers have collectively earned a total of Rs 116 crore, over 78.40 lakh trips

Another app, Rook, launched by the Peace Auto Union in November 2022, also pledged zero commission but failed to gain traction.

ARDU  also plans to introduce MetroMitra as a seller app on the Open Network for Digital Commerce (ONDC) by the end of August or the first week of September. This will provide last-mile connectivity from metro stations.

“We are planning to launch the pilot project for MetroMitra at two metro stations: Jayanagar and RV Road in south Bengaluru, by the end of August or the first week of September. Metro Mitra zones will cover a 5 km radius around each station and will have around 50 auto rickshaws per station. We will levy a Rs 10 pick-up charge in addition to the fare,” said Arikutharam.

Arikutharam said they will also deploy QR codes at prominent landmarks near the metro stations. "Passengers will have to scan the QR code to get an auto to the nearest station. They will not need a separate app to avail of this facility," added Arikutharam.

He said the union is in talks with Bangalore Metro Rail Corporation Limited (BMRCL) to enable customers to locate MetroMitra auto rickshaws through BMRCL's WhatsApp chatbot number (8105556677).