Amid criticism, Namma Yatri, which is backed by Autorickshaw Drivers Union (ARDU) of Bengaluru, has reportedly announced plans to roll out a subscription model for auto drivers on its platform.
As per Moneycontrol, Namma Yatri has unveiled two subscription slabs for drivers, which include a flat INR 25 fee per day for unlimited rides. Besides, drivers also have the option of paying INR 3.5 per ride for the first ten rides, post which there will be no levies for the day.
According to the report, the changes will come into effect on September 1. Meanwhile, a separate report by News9 claims that the new levy has already come into effect beginning August 18.
Developed by fintech startup Juspay and backed by Nandan Nilekani’s Beckn Foundation, Namma Yatri app was launched in late 2022 in collaboration with the city’s auto drivers’ union. The open network mobility app facilitates direct rides between users and drivers, thereby cutting out aggregators such as Ola and Uber, which charge commissions as high as 30%.
“We announced in February 2023 that we would charge drivers a nominal subscription fee, and the same has been updated on our website… Since then, we conducted extensive surveys to understand drivers’ preferences,” a Namma Yatri spokesperson said.
Meanwhile, the new model has been announced as the ride-hailing platform looks to build an alternative revenue stream to cover expenditures, costs and other overhead expenses.
ARDU’s organising secretary PL Pattabhiram said, “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.”
Meanwhile, in the week since the announcement of the plans, Namma Yatri claims to have onboarded more than 35,000 paid drivers while 7,500 others have completed the ‘subscription process organically’.
The move has not gone down well with a section of auto drivers, who have expressed displeasure with the new daily subscription plans. An auto driver reportedly flagged potential concerns that Namma Yatri may eventually start charging high commissions.
“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… We are not getting enough rides through Namma Yatri, so I’m doubtful if I will subscribe,” an auto driver who is listed on the platform told Moneycontrol.
However, as per ARDU, the platform boasts of 88,800 registered auto drivers who serve nearly 17.2 Lakh customers. The union claims that drivers on the app have so far undertaken 78.4 Lakh trips and cumulatively earned more than INR 116 Cr since the launch of the app.
While the platform, at the outset, promised no commissions, the new subscription plans are a way to address mounting costs associated with running an enterprise.
As of now, with Ola, Uber and Rapido mired in a slew of regulatory challenges, including bans by local authorities, it remains to be seen whether the new ‘subscription model’ sees traction from local auto drivers or if it rolled back.
The post Et tu, Brute? Bengaluru Auto Drivers Wary As Namma Yatri App Does An Ola, Uber & Rapido appeared first on Inc42 Media.
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