May 13, 2025 23:00:00

SoftBank-backed ride-hailing app 'Namma Yatri' revolutionizes the industry with its zero-fee business model

Rest of World, a non-profit technology media outlet, interviewed

Namma Yatri , which launched in 2022 as a ride-hailing app for India's popular three-wheeled taxis, also known as 'auto rickshaws,' to learn how it has brought about a revolutionary change in the revenue structure of India's ride-hailing service industry.

Uber and Ola are copying India's fast-growing ride-hailing app - Rest of World
https://restofworld.org/2025/uber-ola-copy-india-zero-commission-ride-hailing-app/

Bengaluru: Namma Yatri Partners With Kapture CX To Transform Ride-Hailing Experience - News18
https://www.news18.com/auto/bengaluru-namma-yatri-hits-25-market-share-partners-with-kapture-cx-to-transform-ride-hailing-experience-9102872.html

Namma Yatri is a ride-hailing service created through collaboration between several grassroots organisations, including Indian payments startups, non-profit organisations and local drivers' unions. The app was developed by Juspay, a fintech company backed by SoftBank, in collaboration with the non-profit Foundation for Interoperability in Digital Economy.

Namma Yatri's business model is a zero-commission model where drivers pay a small initial subscription fee to the platform and then receive zero commission, meaning they receive the full amount of the fare paid by the passenger.

by

Angus

Subscription fees vary by region, but in most states, you can either pay 25 rupees (about 43 yen) per day for unlimited use, or pay 3.5 rupees (about 6 yen) per use for the first 10 times and then it's free.

When Namma Yatri launched its service in Bengaluru in 2022, it quickly became popular among drivers who were troubled by the high fees charged by ride-hailing apps such as Uber and Ola, and experienced astonishing growth of 100% every month, growing to account for 25% of Bengaluru's auto rickshaw ride-hailing market in less than a year.

'We felt this was the app for us, and our customers loved it and spread the word to others,' T.M. Rudramurthy, president of the Bengaluru-based Auto Rickshaw Drivers Union (ARDU), told Rest of World.

The success of Namma Yatri has forced rival services to rethink their business models, and at the time of writing, competitors such as Ola, Rapido, and Uber have also adopted subscription plans similar to Namma Yatri.

By

Adam Cohn

But Namma Yatri has struggled to differentiate itself as rival services have started to introduce the same pricing plans and most drivers already use multiple apps. Most of the nearly 10 drivers Rest of World spoke to said they didn't see much difference between Namma Yatri and other ride-hailing apps.

There is also the challenge of improving revenue, as open source efforts are limiting competitiveness. According to research firm Tracxn, Namma Yatri's revenue for the period from November 2023 to March 2024, for which data is available, was 220 million rupees (about 382.8 million yen), while its net loss was 330 million rupees (about 574.1 million yen).

Despite facing headwinds such as declining driver support and increasing competition, Namma Yatri is eyeing new business opportunities, including expanding overseas and launching a programme to actively recruit women into autorickshaw driving, a profession dominated by men.

by Milaap.org

Pushpalata, a single mother who works as a driver in Bengaluru, earns 30,000 rupees (about 52,000 yen) a month by teaching other women how to drive, and also earns 500 rupees (about 870 yen) a day by driving for other women.

'After I lost my husband, I tried various jobs, including working as a house helper, but driving seemed to suit me better,' Pushpalatha told Rest of World.