The ‘Digitally Empowered Inclusive Stories’ section of the Economic Survey of India states that the Namma Yatri app has increased driver earnings and reduced cancellation rates.
The Bengaluru-based ride booking app Namma Yatri, developed in partnership with the Auto Rickshaw Drivers’ Union, was hailed as a success story of the Open Network for Digital Commerce (ONDC) in the Economic Survey of India 2023-24. The survey, presented by Union Finance Minister Nirmala Sitharaman along with a statistical appendix, was tabled in both Houses of Parliament on July 22.
The ‘Digitally Empowered Inclusive Stories’ section of the Economic Survey of India states that the Namma Yatri app has increased driver earnings and reduced cancellation rates.
“Namma Yatri, a ride-hailing platform integrated with ONDC, eliminates commissions and operates on a subscription fee. Launched in collaboration with the Auto Rickshaw Drivers’ Union in Bengaluru, it increased driver earnings and reduced cancellation rates,” the document states.
Namma Yatri app is part of Open Network for Digital Commerce
The Namma Yatri app, developed by Bengaluru’s Auto Rickshaw Drivers’ Union (ARDU) and built by Juspay Technologies with support from the Beckn Foundation (founded by Infosys co-founder Nandan Nilekani), was launched in November 2022 in collaboration with local auto drivers. The app is open source, does not charge any commission from drivers, and is available through the Open Network for Digital Commerce (ONDC).
Instead, the app takes a small monthly subscription fee from its drivers.
ONDC is a Union government-backed technology platform designed to eliminate intermediaries to enable direct transactions between sellers and customers.
ARDU General secretary T.M. Rudramurthy told The Hindu, “We are happy that our success story has been highlighted in the Economic Survey of India. The Namma Yatri model, praised by both auto drivers and passengers for its zero commission structure, has greatly benefited 4,25,180 registered drivers. The app charges no commission from either drivers or customers, with payments made directly and promptly to the drivers. This approach has significantly boosted the app’s popularity, and we are thrilled that the government is now recognising this model.”
The app’s website states that Namma Yatri is a direct-to-driver platform with all customer payments going directly to the driver. The app is built on an open mobility platform, and claims to be India’s first open mobility app. The app has a dashboard to share all the data of live ongoing trips, completed trips, driver earnings, registered drivers, customers details, and area-wise statistics on completed trips.
Namma Yatri app is now available in 9 cities
The app has gained significant popularity in Bengaluru, gradually capturing market share from Uber and Ola with its no-commission model. In April 2024, the company expanded its services to include cabs in Bengaluru.
Namma Yatri is now operational in Bengaluru, Kolkata, Chennai, Kochi, Tumakuru, Mysuru, Hyderabad, Delhi, and Siliguri. The company claims to have completed 4,71,64,363 rides since its launch in 2022.
The Economic Survey serves as an official report card on the government’s financial performance and the state of the economy for the fiscal year ending March 31. It also offers insights into future policy changes. Typically released by the Ministry of Finance a day before the Union Budget is presented, the survey provides a comprehensive overview of economic conditions and policy directions.
source/content: thehindu.com (headline edited)