Bengaluru's own Namma Yatri is stepping up to challenge established ride-hailing giants Uber and Ola by launching its own cab service. Unlike its competitors, Namma Yatri is introducing a unique subscription-based model, building on the success of a similar approach with their auto-rickshaw services.
Subscription Model: A Game Changer
Namma Yatri is currently testing its cab service in Bengaluru, which is its largest market. The service is unique in that it charges drivers a fixed daily subscription fee. This is a stark contrast to the commission-based model used by Uber and Ola, which typically takes a 25-30% cut from each ride.
A Diverse Fleet
The new service will feature three categories of vehicles: Eco, Comfy, and SUV. The Eco category will offer more economical, non-air-conditioned rides, while the Comfy category will provide air-conditioned comfort. For larger groups or those needing more space, the SUV category will be available. Additionally, similar to their auto-rickshaw service, Namma Yatri allows customers to tip extra during peak demand times.
Industry Impact
The rise of Namma Yatri has prompted a shift within the ride-hailing industry, influencing how companies charge their drivers. Following Namma Yatri's lead, both Ola and Uber have begun offering subscription-based plans to their auto-rickshaw drivers, moving away from the traditional commission model.
Strategic Developments
On April 1, it was reported that Namma Yatri had separated from its parent company Juspay to form a new entity, Moving Tech Innovations Ltd. Juspay retains a majority stake in this new company, which is actively seeking initial funding to fuel its growth.
Namma Yatri is not only expanding its portfolio with its innovative cab service but also influencing industry-wide changes in driver compensation models. This local company's fresh approach could redefine the competitive landscape in Bengaluru's ride-hailing market.
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