Et tu, Brute? Bengaluru Auto Drivers Wary As Namma Yatri Plays The Subscription Card

Amid criticism, Namma Yatri, which enjoys the support of Autorickshaw Drivers Union (ARDU) of Bengaluru, has announced plans to roll out a subscription model for auto drivers on its platform.

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. 

The changes will come into effect from September 1. 

Developed by fintech startup Juspay and backed by Nandan Nilekani’s Beckn Foundation, the Namma Yatri app was launched in late 2022. 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%.

“… Within a week of launching these plans, over 35,000 drivers have opted-in, with 7,500 completing the subscription process organically. Official fee collection begins on Sep 1, 2023, with NY committed to maintaining this fee structure for one year and actively exploring price reductions in the future,” said Juspay chief growth officer Shan MS.

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.

However, 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.

As per Juspay, there are more than 89,000 auto drivers listed on the platform who have logged more than 79 Lakh trips in the past nine months. It also claims that drivers on its platform have cumulatively earned more than INR 100 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 story has been updated following issuance of a statement by Namma Yatri)