Auto Rickshaw Drivers Union in Bengaluru breaks up with Namma Yatri

Namma Yatri breaks up with Auto Union

Namma Yatri, backed by Bengaluru's Auto Rickshaw Drivers Union (ARDU), which was touted as an app for and by the driver community has now parted ways with the Union.

Multiple sources told Moneycontrol that there were some differences, including over pricing and promotions, between the Union and Payment Solutions Provider Juspay-operated app.

One of the differences between Namma Yatri and ARDU arose when the Union wanted to launch a flat Rs 40 fare in a 2km radius between Metro stations and residences/offices, a request Namma Yatri didn't oblige.

In response to Moneycontrol's queries, Namma Yatri's spokesperson stated, “Namma Yatri is Union-agnostic, collaborating with all drivers to create a comprehensive mobility solution for everyone."

However, ARDU was at the forefront when Namma Yatri was launched and ARDU’s general secretary D Rudramurthy and his team was actively involved in the launch of Namma Yatri, creating awareness, mobilising drivers, giving media statements, and sharing the stage in Namma Yatri events.

“We were involved in the Namma Yatri app from the beginning. It got popular in a short span because it was a union-backed app. Without even doing any publicity or advertising, 10,000 drivers joined the app before its formal launch, and 50,000 customers also downloaded the app. But now, many team members who were in the planning of the app have left Juspay, and they are now trying to underestimate the contribution of the ARDU,” Rudramurthy said.

“We also have videos and other evidence that we were part of Namma Yatri since the beginning, even though we have not made any investments. We shared a lot of feedback from drivers and passengers, which helped them come up with a better app and resulted in success," he added.

A Namma Yatri spokesperson in a statement, said, "Namma Yatri (NY) is a community-driven mobility initiative designed to empower drivers. As an open mobility initiative, NY values input and feedback from all drivers and citizens. Therefore, NY represents the entire driver community and is not exclusively affiliated with any single union.

The spokesperson also said that they extend appreciation to three key individuals: Satya Arikutharam, a Bengaluru mobility expert, and driver representatives, Rudramurthy, and PL Pattabhiram.

Their involvement began when they observed the success of the Kochi Yatri app, developed by Payment Solutions Provider, JusPay, built on the Beckn open protocol.

They approached Juspay, expressing the need for a similar initiative in Bengaluru and provided valuable inputs on pricing and product features, the spokesperson said, adding, "Over time, drivers from across Bengaluru joined the initiative as it helped them improve earnings with full freedom and transparency," the spokesperson said.

Arikutharam, an independent mobility expert, said, "Originally, Namma Yatri started as a digital cooperative, but after it received an overwhelming response for the app, Juspay is forming a new company like corporate. ARDU has no say in the decision-making, but our drivers are still part of it. But we hope it does not go the Ola-Uber way with predatory pricing."

To be sure, a faction of ARDU affiliated with the Centre of Indian Trade Unions (CITU), the trade union wing of the CPI(M), has been opposing Rudramurthy, claiming that he has nothing to do with ARDU.

CN Srinivas, president of ARDU, said, “We are opposing all multinational companies, and we don’t want any mediator between a driver and a passenger."

Union Vs Namma Yatri

Namma Yatri was known to many as a platform run by the driver community and for the drivers as there is no platform fee in between.

“App by the drivers for the people. 100 percent direct payment to drivers,” the Namma Yatri website said.

Unlike Ola, Uber, and Rapido, which are platform-based apps that control all aspects such as pricing, commission, who stays on the app and who’s kicked off and more, Namma Yatri isn’t platform-based. It doesn’t have the same licensing as the others either, which is partly why you can only pay cash to the driver or transfer the amount over UPI. No card-based online payments here, and Namma Yatri isn’t collecting any money to transfer to the driver later.

However, running an app of this magnitude requires money and a continuous infusion of it. So far, Namma Yatri’s operations are backed by the Nandan Nilekani-led non-profit Foundation for Interoperability in Digital Economy (FIDE), and built by Juspay.

But now, the costs include engineering, R&D, marketing and even the cost of the maps used on the app.

To solve this issue, Namma Yatri has been collecting a subscription fee from drivers since September 1, 2023. Drivers have two options: pay Rs 25 for unlimited trips per day or Rs 3.50 per ride (no charges after 10 trips).

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

This was a shocker to many drivers, and many Moneycontrol spoke to said that they may exit the app if there is a fee.

Later, Namma Yatri disabled the 'cancel' option for drivers for rides to and from Metro stations to ensure assured rides for passengers for last-mile connectivity.

“We made several suggestions on pricing, fees and others but it was taking a lot of time to get implemented,” a source told Moneycontrol.

The Namma Yatri spokesperson said that the driver community was encouraged to openly express their views.

"As a community-driven initiative, the driver community is encouraged to openly express their views and promote the app, contributing to the overall well-being of drivers. We also welcome inputs and feedback from everyone, given the open nature of the initiative. However, it's important to note that official developments and updates regarding Namma Yatri and its affiliate brands will be exclusively communicated by spokespersons of Namma Yatri,” the spokesperson said.

Unhappy over the delays, ARDU launched Metro Mitra for last-mile connectivity.

Launch of Metro Mitra

In September 2023, Rudramurthy-led ARDU launched Metro Mitra at Jayanagar Metro station in South Bengaluru, where commuters could scan a QR code to book an auto-rickshaw for last-mile connectivity from Metro stations.

Metro Mitra drivers currently operate at four stations—Jayanagar, RV Road, Vijaynagar, and Hosahalli. There are 180 drivers, and the initiative is planning to introduce a WhatsApp chatbot. Unlike Namma Yatri, Metro Mitra requires no app, and passengers can simply scan a QR code to book.

Metro Mitra is a collaborative initiative of auto-rickshaw drivers in partnership with Agnibhu Technologies, LatLong, and GiZ (Deutsche Gesellschaft für Internationale Zusammenarbeit).

However, Namma Yatri clarified that it is not affiliated with Metro Mitra.

Rudramurthy stated that they are currently in the process of onboarding drivers. "We will create awareness about Metro Mitra once we onboard an adequate number of drivers. Otherwise, passengers may be disappointed. Metro Mitra will charge a pick-up fee of Rs 10 above the government-fixed fare, and passengers need to scan the QR code to book rides."

ARDU has already held discussions with the Bangalore Metro Rail Corporation Ltd (BMRCL) to enable customers to discover MetroMitra auto-rickshaws through BMRCL's WhatsApp chatbot (8105556677).

The background

The Rudramurthy-led ARDU and Juspay collaborated to launch the Namma Yatri app in November 2022, promising an alternative to Ola and Uber, whom they accused of charging around 30-40 percent commission.

The timing of the app launch was good. A month before Namma Yatri's launch, the Karnataka transport department had issued notices to Ola, Uber, and Rapido to stop their auto services in Bengaluru and sought an explanation for complaints against exorbitant charges. Subsequently, aggregators approached the high court and obtained a stay.

Read more: How Namma Yatri works: Can it break Ola and Uber's duopoly?

While the government-fixed minimum auto fare in Bengaluru at Rs 30 for the first 2 km and Rs 15 for each additional km, aggregators were charging up to Rs 100. Following the court's intervention, the minimum auto fare charged by aggregators in Bengaluru was reduced to Rs 35.

According to records, 1.31 lakh auto drivers in Bengaluru have enrolled with the Namma Yatri app so far, catering to 37.6 lakh users. Since its inception on November 1, 2022, drivers have collectively earned a total of Rs 288.3 crore, completing over 1.90 crore trips.

Recently, Namma Yatri became a part of the ONDC network, or the Open Network for Digital Commerce — a decentralised, network-centric model where buyers and sellers can transact, irrespective of the platforms/apps they use.