Namma Yatri Plans US Foray In Partnership With Taxi Unions

Namma Yatri Plans To Foray Into US Cab Market In Partnership With Taxi Unions: Report

SUMMARY

Namma Yatri is looking to enter the US market in partnership with American taxi unions to help them get an edge over platforms such as Lyft and Uber

While the talks for a US foray are still in early stages, Namma Yatri’s focus still remains on strengthening its presence in India

Fintech startup Juspay, which spun off Namma Yatri and other mobility apps into a separate entity earlier this year, will reportedly provide the funding for the US entry

Ride hailing upstart Namma Yatri is reportedly in initial talks with multiple American taxi unions to foray into the US cab market.

The ride hailing app is looking to enter the US market in partnership with taxi unions to help them get an edge over platforms such as Lyft and Uber, which currently dominate the US cab market, Moneycontrol reported, citing sources.

The report also said that while Namma Yatri is looking to make inroads in the US market, the focus still remains on strengthening its presence in India, where it has successfully pulled some customers away from big players like Ola and Uber.

Fintech startup Juspay, which spun off Namma Yatri and other mobility apps into a separate entity earlier this year, will reportedly provide the funding for the US entry.

Namma Yatri declined to comment on Inc42’s queries on the plans to enter the US market.

Founded in 2022, Namma Yatri was launched by Juspay in partnership with Nandan Nilekani’s BECKN Foundation and backed by Bengaluru’s Auto Rickshaw Drivers’ Union (ARDU).

The mobility app’s auto-hailing services were first launched in Bengaluru and has since expanded to cities across India – including Kochi, Mysuru and Tumakuru. In Kolkata, it was introduced as Yatri Saathi and also facilitates metro bookings on its platform in Chennai.

In July, Namma Yatri raised INR 92 Cr (around $11 Mn) in a pre-Series A funding round, which saw participation from investors such as Blume Ventures, Antler and Google, among others.

The same month, the zero-commission ride-hailing service rolled out a pilot for auto and car rentals in Bengaluru and Chennai.

It is pertinent to note that Namma Yatri was among the first ride-hailing platforms to come up with a daily subscription model for drivers instead of charging a commission on every transaction.

Following Namma Yatri and Rapid’s suit, ride-hailing giants Ola and Uber have also begun offering subscription-based plans for auto-rickshaw drivers.

Another major player in the ride-hailing space, Rapido last month entered the unicorn club after raising $120 Mn (about INR 1,000 Cr) from WestBridge Capital.