You pay less, drivers earn more. With this powerful tagline and effective operations, Namma Yatri won the hearts and minds of people of Tier 1 cities. Not only that, but it also creates tough competition for Ola and Uber. Secret behind? Namma Yatri Business Model… Yes! Its business model is responsible for its success…
Apart from that, Namma Yatri received a superior edge with its recent developments. So without any delay, let’s go through the working strategy and new features of Namma Yatri!
(A) Namma Yatri Business Model: How does it work?
This is what the official website says- “Namma Yatri is a direct-to-driver app. There is no commission or middlemen. What you pay goes 100% to the Driver and his family.”
Namma Yatri works on a different business model than Ola & Uber. Yes! And that’s what it differentiates itself from these private ride-hailing apps. Let’s dive into Namma Yatri business model and how it works-
(A.1) No Commission Business Model: Direct Payment to Drivers
You see, Namma Yatri stands out in the crowded ride-hailing market by offering a zero-commission model for auto-rickshaw drivers. What does this mean? Unlike Uber and Ola, which charge drivers up to 30% of their earnings as commission, Namma Yatri ensures that drivers receive 100% of the payment from each ride.
Imagine you’re an auto driver – wouldn’t you prefer a service where you keep all your hard-earned money?
This model eliminates the practice where drivers ask passengers to cancel rides and pay directly in cash, a common workaround to avoid high commissions on other platforms.
(A.2) Transparent Pricing
Now, here’s something you’ll love. When you book a ride on Namma Yatri, the price you see is the price the driver sees. No hidden fees, and no surprise charges. This transparency builds trust between riders and drivers because both parties know exactly what to expect. Compare this with Uber and Ola, where sometimes the fare estimate can be wildly inaccurate, leaving you with a higher bill than anticipated. With Namma Yatri, what you see is truly what you get.
(A.3) Independent Platform
Here’s where it gets interesting… Namma Yatri is an independent platform, meaning it’s not controlled by a single, centralized company. This independence gives drivers more control over their pricing and operations. It’s like having a market where buyers and sellers interact directly without a middleman taking a cut. For drivers, this autonomy is empowering, allowing them to make decisions that best suit their needs and schedules.
(A.4) Revenue Streams
You might wonder, how does Namma Yatri make money? The answer lies in subscription fees paid by auto drivers. Instead of taking a hefty commission from each ride, Namma Yatri charges a small subscription fee. This could be a per-ride charge or a fixed monthly fee, providing drivers access to the platform’s services.
Here’s what’s exciting – the subscription fee is much lower than the commissions taken by Uber and Ola, making it a more attractive option for drivers.
(A.5) Direct Interaction with Drivers
When you book a ride with Namma Yatri, you connect directly with an auto driver. Once your ride is confirmed, an auto-rickshaw arrives at your doorstep, and at the end of your journey, you pay the driver directly – either in cash or through UPI. This direct interaction cuts out any middlemen, simplifying the entire process. No more dealing with complex payment systems or intermediary platforms. Just you and the driver, making the transaction smooth and straightforward.
(A.6) Partnerships & Collaboration
Namma Yatri isn’t doing this alone. It collaborates with tech companies like Juspay for app development and support. Additionally, it partners with organizations and driver unions to gather insights and tailor the platform to meet the specific needs of drivers. These partnerships ensure that Namma Yatri remains driver-friendly and continually improves based on real feedback.
(A.7) Long Term Sustainability
To ensure its long-term sustainability, Namma Yatri plans to keep costs low by optimizing operations and exploring open-source alternatives for mapping services. Additionally, it aims to introduce a subscription model for drivers, ensuring they have access to necessary tools and support without breaking the bank. By keeping its operating costs low, Namma Yatri can offer its services at a fraction of the cost compared to other ride-hailing giants, ensuring a win-win situation for both drivers and passengers.
(A.8) The Future of Ride-Hailing
So, here’s what it all boils down to – Namma Yatri’s business model is designed to disrupt traditional aggregator-based models like Uber and Ola. By providing a platform where auto drivers connect directly with commuters, Namma Yatri eliminates the need for commissions, ensures transparent pricing, and fosters a direct relationship between drivers and passengers. This not only makes rides more affordable and straightforward for commuters but also makes driving a more lucrative profession for auto drivers.
Note: We have thoroughly explained the topic “Can Namma Yatri really compete with the giants Uber and Ola?” Go through the article for more details.
(B) What’s New in Namma Yatri?
You know, Namma Yatri is really shaking things up in the ride-hailing industry. If you haven’t heard the buzz yet, here’s what you need to know about their latest offerings. This union-backed service has just rolled out something new and exciting i.e. auto and cab rentals!
Let’s dive into the details-
(B.1) Expanding Offerings: Auto and Cab Rentals
Namma Yatri is taking on big names like Ola and Uber by introducing auto and cab rentals. This marks a significant expansion in their services. You see, while Ola and Uber have been offering cab rentals for a while, Namma Yatri is reportedly the first in the country to pilot auto rentals. That’s a game-changer!
(B.2) Pilot Phase: Where can you try it?
Right now, this new rental service is being tested in Bengaluru and Chennai for Android users. But don’t worry if you’re not in these cities; Namma Yatri plans to roll out the service in Delhi-NCR soon, maybe even in the next couple of weeks. So, keep your eyes peeled if you’re in the capital region!
(B.3) Competitive Pricing
Here’s what you’ll love – the pricing for these rental services is pretty straightforward and competitive. For instance, renting an auto for an hour costs INR 190 for 10 kilometers. If you need a cab, here are your options-
- Non-AC mini cab: Rs.250 per hour
- AC mini cab: Rs.285 per hour
- Sedan: Rs.320 per hour
- XL Cab: Rs.390 per hour
If your journey exceeds 10 kilometers, you’ll be charged an additional fare ranging from INR 10 to INR 21 per kilometer, depending on the vehicle type. Plus, there’s a flat usage fare of INR 3 and a pickup charge between INR 20 to INR 30. Simple and clear, right?
(B.4) Expanding Geographically
Namma Yatri isn’t just sticking to rentals. The service, which started in Bengaluru, has already expanded its cab-hailing services to other major cities like Kochi, Kolkata, Hyderabad, and Chennai. And earlier this year, it entered the Chennai and Delhi markets to offer auto rides.
(B.5) Competing Apps
The expansion spree of Namma Yatri comes alongside the launch of several other ride-hailing apps across the country. For example, a transport union in Bengaluru is set to roll out an auto rickshaw booking app called “Nagara Metered Auto” in partnership with Agnibhu Technologies. It’s clear that the ride-hailing space is heating up with new competitors.
(B.6) Tech Partnerships
Namma Yatri’s success is not just about expansion but also about smart partnerships. Developed by fintech startup Juspay and backed by Nandan Nilekani’s Beckn Foundation, the app connects riders directly with drivers, cutting out the middleman. This means no more hefty commissions, which can be as high as 30% on other platforms.
(B.7) Collaboration with Google Maps and ONDC
Namma Yatri is also teaming up with Google Maps and ONDC (Open Network for Digital Commerce) to enhance public transport services in India. These collaborations aim to make commuting more efficient and affordable for everyone.
(B.8) Recent Trends and Growth
Interestingly, while ONDC has seen a fall in mobility transactions recently, Namma Yatri is showing moderate growth. In May, the platform recorded 38 lakh trips, up from 36 lakh in April. This indicates a steady increase in usage, even as the overall market faces some fluctuations.
(B.9) User and Driver Base
Overall, Namma Yatri boasts an impressive network of over 2.1 lakh drivers and 50 lakh customers. It’s becoming a prominent player in several cities, including Bengaluru, Mysuru, Hyderabad, and Kolkata. So, if you’re in one of these cities, you’re part of a growing community of Namma Yatri users!
(C) Final Words
So, there you have it! Namma Yatri is not just another ride-hailing app; it’s a service that’s continually evolving and expanding to meet the needs of its users and drivers. All thanks to its innovative business model and new offerings. Next time you need a ride, why not give Namma Yatri a try and see the difference for yourself?
Don’t forget to share your experience in the comment section below! Thanks for reading 🙂
