Bengaluru drivers turn to Telegram, WhatsApp and zero-commission apps to beat Ola-Uber duopoly

There are two types of Telegram/WhatsApp duty groups for cab drivers. One type has only drivers who pass on leads to others if they themselves are unavailable, away, or unable to fulfil a trip request. The other group includes drivers, travel agents and representatives from the administration departments of tech parks, IT firms and other private companies who post requirements for intracity trips for their employees after office hours. Some drivers also add their regular customers to these closed groups.

It's a win-win situation: the drivers do not pay any commission, and passengers only need to pay fares as fixed by the government.

Also read: After auto drivers' protest, Karnataka transport department to crack down on bike taxis in Bengaluru

There is a specific format for cab requests in these groups. Here's a sample message: "Need a sedan, neat and clean vehicle with a white-uniformed driver. Ecospace Bellandur to Madhavara. Employees: 3. Time: 4:50 pm. Amount: Rs 750,".

Once this message is shared in the group, drivers/admins reply with the name, cab registration number, vehicle model and the driver's phone number. Most trips are for employee transport within the city or airport transfers, with some involving outstation travel.

Karnataka Chalakara Okkota is one of the drivers' unions that has such an arrangement in place. It has two 'duty' groups on Telegram, one with 31,715 members and another with 24,530 members.

KCO founder and president G Narayanaswamy told Moneycontrol: “We started Telegram groups due to the high commission charged by aggregators like Ola and Uber, which is 30-40 percent from drivers. In our duty groups, drivers do not need to pay any commission. We operate according to government-fixed fares.”

mParivahan to check drivers' credentials

Admins of these groups also use the mParivahan app, initiated by the Union Ministry of Road Transport & Highways (MoRTH), to check drivers' credentials. Narayanaswamy said they regularly monitor details through the app. "If a vehicle's insurance or fitness certificate has expired, we immediately remove the driver from the group. They are reinstated only after submitting the required documents."

R Nagaraju, a cab driver, said there are at least 40-50 duty groups on Telegram and WhatsApp in Bengaluru. "I was among the first to join Telegram duty groups, but as members grew, it became difficult to manage, so I started a WhatsApp group only for airport drivers. When Ola-Uber aggregators charge passengers Rs 1,000 for an airport trip, they only pay drivers Rs 650-700 after deducting their commission charges. In our group, drivers keep the entire fare amount. We also ensure 24/7 cab availability for customers," said Nagaraju.

Also read: Spotlight on zero-commission models after Namma Yatri, auto union break tie-up

He said most group admins check documents such as registration certificates, taxi permits, pollution under control (PUC) certificates, insurance details and vet for any pending traffic violations through the mParivahan app to ensure they assign only reliable drivers to customers. "This model benefits drivers by providing guaranteed work without commission fees. Some groups even require drivers to submit vouchers with customer signatures to group admins after the trip," said Nagaraju.

Another Telegram group, A1 Cabs, has 19,925 members. In this group, drivers must upload a photo in their driver’s uniform inside their car as their display/profile picture and include their mobile number in their bio. Members, including company representatives and the public, post pick-up and drop-off locations along with price quotes. Interested drivers respond and negotiate the fare.

Union-backed apps

Bengaluru's auto unions led the way when in November 2022, the Auto Rickshaw Drivers Union (ARDU), led by general secretary D Rudramurthy and his team, collaborated with online payments platform Juspay to launch the Namma Yatri app. ARDU played a crucial role in launching Namma Yatri, including creating awareness and mobilising drivers.

According to Namma Yatri, they have 38.9 lakh registered users and 1.9 lakh drivers on their platform in Bengaluru so far. They have completed a total of 4 crore trips, helping drivers earn Rs 579 crore since its inception.

Also read: Top ride-hailing firms experiment with subscription models to retain drivers and tackle competition

"Namma Yatri pioneered the concept of a zero-commission, direct pay-to-driver model. With zero commission, drivers keep 100 percent of their fare, leading to higher earnings compared to other platforms. Drivers have reported around 20 percent higher earnings through Namma Yatri compared to other platforms. Additionally, payments are instant, eliminating the wait for the payment cycle from aggregators," said a Namma Yatri spokesperson.

"For auto drivers, our subscription fee includes a daily plan that is free for the first ride and Rs 25 per day for unlimited rides, as well as a pay-per-ride plan at Rs 3.50 per ride for the first 10 rides, capped at Rs 35 per day. Currently, no subscription fee is charged for cab drivers, but we plan to introduce fees starting from the last quarter of 2024, with the exact amount decided based on feedback from the driver community," the Namma Yatri spokesperson added.

Also read: After Namma Yatri, Bengaluru gets another union-backed auto rickshaw app

Separately, Karnataka Rajya Chalakara Parishath (Karnataka State Drivers' Council), in collaboration with Agnibhu Technologies and Brand Pride Mobility Pvt Ltd, launched the Nagara Metered Auto driver app in June 2024. Unlike other aggregators, passengers do not need to download an app to book a ride; they can book through the website (nagaraa.com), by scanning the driver's QR code, or via WhatsApp (9620020042).

N Niranjanardhya, CEO of Brand Pride Mobility, told Moneycontrol, "More than 2,000 drivers have already joined the Nagara Metered Auto platform. We receive around 150-200 rides daily through WhatsApp chatbot, website bookings, street hailing, etc. We plan to increase awareness by using stickers inside and outside vehicles. While we do not charge any commission, we may introduce a daily or monthly subscription fee after discussing with our drivers.”

Failed app initiatives

In 2017, the Janata Dal (Secular)-backed cab drivers’ association, along with a Kolkata-based startup, launched Namma TYGR, but it ceased operations after a few months.

Separately, Peace Auto Union, in collaboration with a mobility firm, launched an app named Rook in 2022, which is no longer functional.
In September 2023, Rudramurthy-led ARDU launched MetroMitra, an initiative of auto-rickshaw drivers in collaboration with Agnibhu Technologies, LatLong, and GiZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) for last-mile connectivity from Metro stations, but it failed to gain traction.

Subsequently, Rudramurthy rejoined Namma Yatri as a community enabler, while the MetroMitra team launched Nagara Metered Auto.

Also read: Namma Yatri mends partnership with Bengaluru autorickshaw drivers union

Zero-commission apps

Buoyed by the driver response to the zero-commission model, many aggregators followed suit to woo drivers. S Kumar, an auto driver, said, "Many firms are now offering zero commission. For Namma Yatri, it's Rs 3.50 per trip or Rs 35 per day and it is Rs 10 per day on Rapido (another app). I still take some rides on Uber and Ola, but the number has drastically reduced compared to three or four months ago."

Also read: From shared autos to QR code booking, Bengaluru auto-rickshaw aggregators accelerate expansion

In 2022, MYn, the ride-hailing part of a mobility super-app, became one of the first aggregators to implement the zero-commission model. Abhisyant Anasapurapu, head of operations at MYn App, told Moneycontrol, "We charge a flat fee of Rs 24 per ride on cabs and Rs 10 per ride on auto rickshaws, including GST (goods and services tax). We ensure no commissions or charges to the drivers, and we already provide health insurance. We have about 40,000 cabs and 30,000 autos in Bengaluru."

DRIFE, a blockchain-based mobility app, also promises drivers a zero-commission model. Firdosh Sheikh, co-founder and CEO of DRIFE, told Moneycontrol, "We do not charge cab drivers any commission at all. We offer three levels of subscription plans ranging from Rs 5,000 to Rs 7,000 a month, depending on the plan the driver opts for. Across all plans, drivers receive unlimited rides once they pay the full subscription fee."

How are Ola and Uber trying to reduce driver attrition?

Last year, Uber launched Uber Pro, a rewards programme for drivers that includes Pro credits, or cash credits provided by a third party and facilitated by Uber. These credits help drivers achieve life goals such as supporting their children’s education or contributing to household expenses. Additionally, all Uber Pro drivers were eligible for discounted premiums on life, health and motor insurance. Ola was unavailable for comment.

Also read: Ola, Uber and Rapido remove in-app wallet payments for auto-rickshaws to retain drivers, cut costs

Uber and Ola are also helping drivers with microloans, sources told Moneycontrol. "These are small loans that can be used for children's education, purchasing a new vehicle and other driver requirements," one industry source told Moneycontrol.

While apps cannot enforce exclusivity, people aware of the matter say Uber is also working to enhance the driver app experience by adding features like upfront pricing, removing commissions and moving towards subscription models, among others.