Namma Yatri ride-hailing app, backed by the Bengaluru Autorickshaw Drivers Union (ARDU) and developed by Juspay Technologies and backed by Nandan Nilekani’s Beckn Foundation, has announced that it will charge a subscription fee to auto drivers, starting September 1.
As per the announcement, auto drivers have two options: They can either pay Rs 25 per day for unlimited rides per day with the first ride free or pay Rs 3.50 per ride for 10 rides a day.
The company says that the subscription fee will be used to cover costs for Namma Yatri’s engineering, R&D, marketing, and maps. The plan is to eventually move to open applications to save costs.
Speaking to Financial Express, Rudramurthy, general secretary, ARDU, said, “We are introducing these charges to be able to sustain our business in terms of maintaining the app, cover expenses, and managing a customer care centre. This is not a commission, it is a software fee that we are charging on a subscription model.”
However, some auto drivers are apprehensive saying that the fee might increase over time. Responding to this, Shan MS, chief growth officer of Juspay, assured that the newly-introduced subscription model provides price protection for at least a year, which means that any revision in charges will only apply from September 1, 2024.
As of now, over 35,000 drivers have already opted for the subscription plan, while almost 7,500 completed the subscription process organically, said the company. The app has over 89,000 drivers and 17 lakh customers. In the last nine months, the app recorded over 90,000 daily trips and 79 lakh trips.
