InDrive Business Model – How Does It Make Money?

Indrive Business Model

As of today, booking a taxi is not a strenuous task to perform. Within a few clicks in your phone you can just book a taxi that is feasible and comfortable according to you. There are many big taxi booking app players available in the market, not just at local pace but at global level too. One of them is InDrive, that has been successfully running in the market. But how does InDrive operates? For that lets look at InDrive business model.

Let’s get to know about the emerging player in the taxi booking industry i.e. InDrive.. Read further to know about the business model of InDrive and how does it make money! As of today understanding business model of online taxi app is crucial. One such is InDrive business model.

Indrive Business Model

InDrive, a rising star in the world of ridesharing, has transformed daily commutes into something extraordinary. InDrive is not your average carpooling app. It’s a smart, sustainable, and user-friendly platform that brings drivers and riders together, while also helping the environment. 

InDrive was earlier known to be as InDriver app, but in October 2022, InDrive rebranded and became InDrive.

Company Profile

InDrive is a platform that has made an easy way of booking a taxi by negotiating on a price on which both the driver and the rider agrees upon. 

Have a glance at their establishment!

Name of the Company InDrive
FounderArsen Tomsky
Founded in 2012
Headquarter Mountain View, California, United States
Officially established in 2013
Recorded downloads 150 million 
Operating in 47 countries & 700+ cities
A glance at InDrive Company Profile

InDrive was founded by Arsen Tomsky, the founder and CEO of InDrive in Yakutsk, one of the coldest cities in Siberia in 2012, but was officially established in 2013 in Mountain View, California. 

The main and major motive behind establishing this app was the convenience that will allow customers/riders to set or negotiate the fare according to them. 

The concept was unique and people find it very accurate and easy to use. This app allows  people to choose the ride and fare according to them. And also provides them the feature to choose the drive for their ride by looking at their past ratings.

Indriver App

Over the years, due to the high demand of taxi booking, InDrive has emerged as the key player in the market with its distinct features. In the record InDrive has reported more than 150 million downloads and is operating in 47 countries and 700+ cities. It provides over 1 billion rides. 

It is considered to be the second largest ride hailing and taxi app across the globe in terms of downloads.

InDrive provides main services in city to city rides, courier services, city rides, local services, freight/cargo delivery, and in intercity transportation. 

Indrive City to City

The key points- 

  • InDrive was internationally introduced in Astana, Kazakhstan in December 2014. 
  • In November 2018, it started to provide its services in Africa and Arusha in Tanzania. 
  • In 2021, it started to provide its service in Pakistan, and within a year it became the most downloaded app. 
  • With their determination and hardwork at the start of 2021, InDrive achieved the title of Unicorn with the holding of $150 million investment. 
  • InDrive expanded its service by the end of march 2022 in America, Asia(India, Pakistan, Indonesia, Kazakhstan) Middle East, and Africa. 

InDrive Business Model:

InDriver is becoming an on-demand cab booking service day by day and is successfully making its place in the market with other big giants of cab booking services. InDriver works on a peer-to-peer pricing business model. Where rides are finalized after the agreement and negotiation between both the driver and the passenger. 

Indrive Fare

InDrive provides the platform to both the passenger and the driver to avail their services as per their convenience. InDrive works on a peer-to-peer business model, where passenger and driver directly communicate with each other without the mediator.

For drivers, in this business model, after registering themselves, drivers will receive offers from passengers regarding the ride and destination with the fair.

  • If the driver is not convinced with the fare offered, they can reply with another fare.  
  • Drivers can also cancel the ride if the fare is not convincing. 
  • InDrive comes with a chat support and emergency call service, if needed in between the ride. 

For users,  InDrive business model offers a user-friendly interface. 

  • Riders after registering, will need to enter their location from where they are booking and the destination where they have to reach. 
  • Once the rider completes all the information, can negotiate the price with the driver.
  • When the whole procedure is completed the driver can go for the pickup.
  • After the ride is completed, the passenger can give ratings to the driver. 

Note: According to the latest reports, InDrive ride hailing app has seen five-fold jump in their driver registrations and also has observed a four fold jump in their number of rides.

How InDriver makes money through their business model?

Here comes another major part of our discussion! 

As seen above, InDrive follows a very convenient and easy business model to generate money and grow their revenue. InDriver follows a simple approach for earning money. Basically, it follows two simple models for making money, i.e. Commission model and through advertising model.

Commission based business model

Under a commission based model, InDrive charges a certain amount of commission on each transaction that takes place on their app. 

  • One of the most highlighted features of InDrive and its business model is that they don’t charge any commission fee for the first six months when launched in a new city. 
  • When this offer becomes invalid, they charge around 5-10% of the fare. 
  • Apart from charging only this small amount of the total fare, InDrive still manages to make their revenue grow, while the other big taxi giants charge around 20% of the fare. 
  • InDrive only charges low commission around 5-10% of the fare, with this passengers get to enjoy services at a lower rate and drivers also get to earn good out of this. 
  • This pricing strategy helps them to become one of the prominent players in the market as compared to competitors in the market. 
  • This low cost feature has helped them to lower their expenses and help them to grow by each passing day. 

People driving Indrive

Advertising Business Model

Under the second model i.e. advertising model, InDrive business model allows the promotion of other brands and businesses on their platform. This generates a good amount of revenue for them.

But, as of now the company is focusing on its main idea of apps and not on promotional businesses

Some characteristics of InDrive app:

  1. User-friendly : A well designed and easy-to-use mobile application is often crucial for the success in the ridesharing industry. It should allow users to request rides, track drivers, and make payments seamlessly. 
  1. Surge pricing : Surge pricing during peak hours or high demand periods can help balance supply and demand and encourage more drivers to be available. 
  1. Negotiation : Fare price fare negotiation, by this passengers can present a specific amount for the ride. The driver either can accept the offer or can even reply with another offer. 
  1. Subscription plans : To enhance the experience for request users, InDrive offers subscription plans. For a monthly fee, subscribers get perks like a priority matching and special discounts. These recurring payments add up and create a steady stream of income for InDrive. 
  1. Partnerships : InDrive partners with various entities to expand its reach and revenue potential. Partnerships with car rental companies, public transportation, and even food delivery services enable cross-promotion and shared profits. 
  1. Passengers can choose their driver : InDrive provides its passengers with the exciting feature that they themselves choose their driver for the ride. Passengers can see the past rating of the driver while choosing. 
  1. Drivers can choose the ride : Drivers too have an option to choose whether they want a particular offer or not. Driver is provided with three offers – accept, reject and bid higher. According to their convenience they can bid higher on a ride. 
  1. Sustainability initiatives : Embracing sustainability by promoting electric or hybrid vehicles can align with eco-conscious consumers’ values. This not only aligns with sustainability goals but also opens the door to subsidies and grants from government and environmental organizations. 

Note: Do you know about the fiery battle between the two top competitors in this taxi booking sphere? To find out more about it, visit our article, Ola vs Uber.


InDrive’s business model is a testament to the power of innovation and sustainability. By making ridesharing efficient and eco-friendly, it attracts users and partners alike. 

By prioritizing user experience, diversifying revenue streams, and embracing sustainability, InDrive has carved out a successful niche in the market. Also has emerged as a key player in on-demand taxi-hailing apps.

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Published By: Aashita Singh
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