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    Bangalore to introduce another ride hailing app based on subscription model

    Following the launch of apps like Namma Yatri, another app backed by professional auto-rickshaw drivers with a subscription model is set to come to Bangalore. ‘Nagara Metered Auto,’ created in collaboration with Bengaluru Professional Autorickshaw Drivers, Agnibhu Technology, and BrandPride Mobility, is an application designed specifically for auto-rickshaw drivers.

    Niranjanaradhya N, CEO of Brand Pride mobility Pvt Ltd, the company behind the initiative, noted that ‘Nagara Metered Auto’ is a SaaS application for professional autorickshaw drivers. Drivers with calibrated meters certified by the State Legal Metrology Department in Bangalore can sign up on the app to offer their services to customers.

    The app allows customers to book rides through its website, WhatsApp, or ONDC. Additionally, riders can initiate rides independently for street-hailing passengers using a unique Driver QR Code to share their credentials with customers. The app charges government-fixed fares: ₹30 for the first 2 km and ₹15 for each subsequent km, as displayed on the meter.

    The CEO, while speaking to Medianama, confirmed that the app’s monetization model will be subscription-based rather than commission-based, which will be implemented following discussions with drivers.

    K Somashekar of Karnataka Rajya Chalakara Parishath, an auto union supporting the service, told MoneyControl, “This new app will be a win-win situation for both passengers and drivers. In many cases, drivers don’t receive the correct fare even if a longer distance is covered. Now, most people prefer to book autos through digital mode.”

    Why It Matters

    The shift towards subscription-based models for ride services is noteworthy, given the longstanding criticisms of the commission-based model used by companies like Uber and Ola. Drivers have argued that the commission-based model lacks transparency and does not compensate them fairly. In contrast, the subscription-based model seems to be favored by drivers due to its potential for higher profitability. Thus, the model is likely to cause higher retention and onboarding for drivers.

    Recently, Uber and Ola have also moved to a subscription-based model, following Rapido’s lead. A spokesperson for Uber told ET that the company adopted the model because it “wants to provide more options for its riders, acknowledging that many companies are already operating on this model.”

    Notably, Namma Yatri was the first ride aggregator service to charge zero commission to drivers, opting instead for a subscription fee. The success of this approach has likely influenced other ride-hailing services to collaborate more closely with riders and drivers to develop models that benefit them.

    Also Read:

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    The post Bangalore to introduce another ride hailing app based on subscription model appeared first on MEDIANAMA.

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