Rapido launches ‘Auto Plus’ in Bengaluru, promising no cancellations; tariff above HC-mandated fare

While Moneycontrol found that Ola and Uber adhered to the court-mandated fares, there were complaints against the Namma Yatri app, supported by the Auto Rickshaw Drivers Union (ARDU), which was charging more. Representational picture

App-based aggregator Rapido has launched Auto Plus in its home city of Bengaluru, a premium autorickshaw service that guarantees rides without cancellations.

Moneycontrol ran a check on October 26 and found that Rapido's regular autorickshaw minimum charge is Rs 46, while Auto Plus demands a minimum of Rs 71. Both are well above the fare for auto aggregators fixed by the Karnataka High Court.

According to its order in October 2022, app-based auto aggregators cannot charge 10 percent more than the government's base fare, plus the applicable 5 percent goods and services tax. (GST)

In November 2021, the state government set the minimum fare at Rs 30 for the first 2 km and Rs 15 per additional km for autorickshaws, bringing the minimum fare for app-based autorickshaws in Bengaluru to Rs 35. Auto aggregators were charging more than Rs 100 as minimum fare until the court intervened in October 2022.

For its regular service, the Rapido app displayed a minimum fare of Rs 46, comprising a Rs 36 ride fare and a Rs 10 pickup charge. For Auto Plus, however, the displayed minimum fare was Rs 71, but no detailed breakup was provided within the app. "Auto Plus service exclusively features top-rated captains in the city and guarantees zero cancellations after booking. The pickup charge is entirely passed on to the captains (drivers)," it said on the app.

In an official statement to Moneycontrol, a Rapido spokesperson said, "In Bengaluru, the minimum fare for Auto service (what the company calls its regular offering) is Rs 30 per km for the first 2 km, with additional charges of Rs 15 per km applying thereafter. Auto Plus charges will be 25-30 percent higher than Auto."

The statement also noted, "Rates may vary based on factors such as time of day, demand, and ongoing promotions or discounts."

The spokesperson said, "Rapido rolled out its Auto Plus services in September 2023, commencing in Hyderabad, and initiated an Auto Plus pilot programme in Bengaluru in October 2023. Currently, over 10,000 Auto captains are part of the Auto Plus service in Bengaluru. In the next three months, Rapido plans to expand this service to over 50,000 Rapido Auto captains."

"Auto and Auto Plus are two distinct service offerings provided by Rapido, each offering its own set of features and benefits for both drivers and customers," the statement added.

Rapido introduced its Auto service in 2020 with the goal of providing commuters with a convenient and standardised option for their daily transportation needs. Auto Plus represents an upgraded version of this service, designed to offer a more convenient and reliable experience to both customers and captains, it said.

"This service ensures improved availability of autos, making this mode of transportation more accessible to customers. Once a ride is confirmed, there are no cancellations, enhancing reliability for customers and income stability for captains. Auto Plus also ensures that highly-rated captains are readily available to serve customers, enhancing the overall quality of service," Rapido explained.

Since its inception in 2015, Rapido has raised around $320 million in total funding from WestBridge Capital, Nexus Venture Partners, TVS Motor Company, Yamaha Motors, Shell Ventures (the investment arm of the petroleum major) and several others. Food tech major Swiggy led Rapido’s $180-million funding round in April 2022, which valued the bike taxi startup at about $830 million, according to Tracxn, a private markets data provider.

‘Cannot charge above HC-mandated fare’

Transport department officials said aggregators are prohibited from charging fares exceeding those mandated by the Karnataka High Court. In October 2022, in response to citizens’ complaints and reports of autorickshaw minimum charges exceeding Rs 100, the transport department issued notices to aggregators, instructing them to cease operating autorickshaws and apply for a separate three-wheeler licence. Following this, the high court allowed aggregators to operate autos by charging 10 percent more than the government's base fare, plus GST.

L Hemanth Kumar, additional commissioner for transport and secretary of State Transport Authority, told Moneycontrol: "Rapido is operating services illegally. They cannot charge more than Rs 35 minimum fare for autorickshaw services. We will book cases against drivers if they charge more."

While Moneycontrol found that Ola and Uber adhered to the court-mandated fares, there were complaints against the Namma Yatri app, supported by the Auto Rickshaw Drivers Union (ARDU), which was charging more.

In response, a spokesperson for Namma Yatri told Moneycontrol, "Namma Yatri follows the pricing guidelines of the Karnataka government for the actual trip, which is Rs 15 per kilometre with a minimum base fare of Rs 30 for up to 2 km. For the distance travelled by the auto driver for doorstep pickup, there is an additional flat pickup charge of Rs 10."

"Namma Yatri is a direct-to-driver SaaS technology solution that connects drivers to customers directly, rather than being a typical app aggregator. The money paid by the customer goes directly to the auto driver, and Namma Yatri does not collect anything from the customer. Moreover, there has been no recent increase, and the pricing policy has remained consistent over the last few months. Namma Yatri does not implement surge pricing," the spokesperson added.

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