Bye Bye Commission! Namma Yatri Takes On Ride-Hail Giants

Namma Yatri, the open and community-driven ride-hailing platform, is set to revolutionize the way Delhi-NCR commutes. Following a successful pilot in Bengaluru, the revamped “Yatri” brand is now set to provide its zero-commission services across the capital region, aligning with the Open Network for Digital Commerce (ONDC) network. This launch marks a significant milestone for the app, following a successful pilot with auto-rickshaws.

A Fresh Approach to Ride-Hailing

Unlike traditional ride-hailing giants, Namma Yatri operates on a subscription-based model, eliminating the hefty commissions that eat into drivers' earnings. This innovative approach, as highlighted in the Economic Survey 2023-24, has been instrumental in Namma Yatri's rapid growth.

Shan M S, Co-Founder of MovingTech, the parent company of Namma Yatri, expressed his excitement about the Delhi-NCR launch, stating, “We're thrilled to bring Namma Yatri’s transformative model to the heart of India. Our focus is on empowering drivers and creating a more equitable ecosystem for both riders and drivers.”

"In our commitment to support the EV mission, we won’t charge any subscription fees or commission for electric autos and cabs in Delhi-NCR till Mar 2026,” he added.

A Win-Win for Drivers and Passengers

Namma Yatri’s zero-commission model translates to significantly higher earnings for drivers compared to traditional platforms.

Unlike the commission-based model that popular cab aggregators like Uber and Ola Cabs follow, MovingTech claims Namma Yatri drivers earn an average of 15-20% more. To further incentivize sustainable transportation, Namma Yatri is offering zero subscription fees and commissions for electric autos and cabs in Delhi-NCR until March 2026.

For passengers, Namma Yatri offers a more affordable and transparent ride-hailing option. By cutting out commissions, Namma Yatri can potentially pass on savings to riders in the form of lower fares or additional features.

Rapido, a competitor, was the first to implement a commission-free model for cab rides last year, opting for a Software-as-a-Service (SaaS) model with a nominal subscription fee. However, Yatri’s broader approach includes various vehicle segments, including autos and bikes, enhancing its appeal.

Raising Funds and Raising Standards

Namma Yatri's disruptive business model has garnered significant investor interest. In July, the company secured $11 million in pre-Series A funding led by Blume Ventures and Antler, with participation from Google and other prominent investors.

Namma Yatri's expansion into Delhi-NCR marks a significant step towards reshaping the urban transportation landscape. By prioritizing driver welfare, promoting sustainability, and aligning with government initiatives, Namma Yatri is poised to become a leading player in the Indian ride-hailing market.

The Economic Survey 2023-24, released on the eve of the Union Budget, highlighted Namma Yatri as a success story within the ONDC framework. The report praised Namma Yatri for its innovative approach, which eliminates traditional commissions in favor of a subscription-based model. This shift marks a notable departure from the commission-based models employed by established ride-hailing giants like Uber and Ola.

Launched by Auto Rickshaw Drivers’ Union in Bengaluru, the platform has increased drivers' earning and reduces cancellations, the report stated. 

The beta version of the ride-hailing platform was launched in Bengaluru on November 1, 2022. Namma Yatri is now present in eight cities across India and has onboarded 4.2 lakhs auto and cab drivers providing them Rs 725 crores of earnings and catering to 74.3 lakh passengers so far.

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