Story of Namma Yatri - Part 2

The workings of the open-mobility model for Namma Yatri

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Dec 05, 2023

Hey there👋,

It's Dharmesh Ba! Thanks for your love towards The India Notes newsletter. I run 1990 Research Labs, a boutique user research consultancy based in Bangalore. We're on the lookout for new projects to start in January 2024. If you'd like to collaborate or know someone who might, drop us a ping. We've worked with top startups like CRED, Plum Insurance, Udaan, Allen Digital, and Jar. Now, let's continue with the story.

Welcome to Part 2 of the Namma Yatri story. If you are new here, be sure to check out Part 1, where we discussed how Namma Yatri came into the picture and how they built a driver-focused mobility marketplace. Let's look at some of the missing pieces from the last edition in this edition.

Does Subscription Alone Cover Costs?
Driver-driven marketing campaign
The Open Data approach
Resolving conflicts between driver and passenger
Community support initiatives by Namma Yatri
One App. Multiple Versions.
Future Growth of Namma Yatri

Does Subscription Alone Cover Costs?

Namma Yatri charges around Rs. 25 as a daily driver subscription fee. For a driver earning around Rs. 1500 per day on average, Rs. 25 is less than 2% of their income compared to other ride-sharing apps, which take up to 20% as commissions. However, one might wonder if these margins are enough to cover the network's cost. According to Mags, who heads the product at Namma Yatri, cost minimization has been one of their primary goals.

There are four essential costs for running the network:

Team cost
Maps cost
Server costs
Marketing costs

The Namma Yatri tech team is kept lean, with engineers borrowed from their parent company, Juspay. To reduce the map cost, the team switched from Google Maps to Open Street Maps, thus lowering the cost of APIs. While other ride-hailing startups spend Rs. 12-15 per ride on maps, Namma Yatri spends only Rs. 2 per ride, and they hope to reduce this to Rs. 0.50 at scale.

Driver-driven marketing campaigns

While ride-hailing apps started with deep discounts on rides when they launched in India, Namma Yatri relies on word-of-mouth adoption from both drivers and customers. Namma Yatri drivers feel that it's their app and are happy to refer customers and encourage them to download it. There is even a driver referral program where drivers can refer customers via a QR code pasted in their auto.

In our conversation, Mags also fondly recounted that the banners and stickers they had placed in autos in January are still there, as the drivers love being associated with the brand.

The drivers internally also have a leadership board based on the number of rides conducted per day, which encourages drivers to drive more.

In addition to these efforts, Namma Yatri also creates engaging content on Instagram that increases brand awareness. They also run Instagram ad campaigns to promote Namma Yatri.

Namma Yatri also launched an anthem that celebrates the benefits and the efforts of auto drivers in Bangalore.

The open data approach

Juspay takes pride in maintaining transparency between the Namma Yatri app and its drivers, and this transparency has now been extended to the public. The creators of the Namma Yatri platform have added an 'Open' section to their website, which shows live updates, including active rides, customer searches, and drivers' earnings.

One can't help but wonder if it is meant to have the same effect as Sachin Tendulkar's belief that his bat should do all the talking for him. In a similar vein, showcasing real-time data is certainly an effective way to build trust in the efficacy of Namma Yatri, the Open Mobility Protocol, and the extensive network of Bangalore's auto-rickshaws operating at full capacity.

Source: Namma Yatri’s Open data dashboard

Resolving conflicts between driver and passenger

While most marketplaces prioritize the customer's narrative in conflicts, Namma Yatri provides an ear to the driver's side of the story before arriving at conclusions. The decision to penalize or block a driver from the network comes after carefully considering the situation. Action against the driver is only taken when it is ascertained that the driver is at fault. If not, the conflict is considered resolved without consequences for the driver.

The customer support aspect of the Namma Yatri app appears to be under development. Currently, the app lacks an in-app interface for customers to use in emergencies or to submit instant complaints to the company. As Namma Yatri positions itself merely as an enabler of rides between passengers and drivers, it maintains a low-touch customer support model, unlike other ride-hailing apps. Complaints are handled via email or helpline numbers, and for emergencies, customers are encouraged to call the respective police helplines.

There have been reports on social media of unpleasant incidents involving Namma Yatri rides. Although Namma Yatri actively monitors these situations and reaches out to the affected passengers, the extent of their involvement and the resolution of these issues remain unclear.

Namma Yatri allows passengers to set emergency contacts to send SMS during emergencies.

Community Support Initiatives by Namma Yatri

In addition to helping drivers, Namma Yatri has implemented initiatives to enhance the lives of their customers and promote accessible mobility.

The "Purple Rides" program, in partnership with EnAble NGO, trains drivers to assist individuals with disabilities, thereby making their travel easier. By mid-2023, approximately 1500 drivers had been trained and had provided assistance in thousands of rides. Users can disclose their disabilities on their app profiles, and the app offers additional features such as talkback for the visually impaired and call disabling for those with hearing impairments.

Another initiative involves the integration of women drivers into Bangalore's auto-driver fleet. Namma Yatri supports these female drivers by providing training, assisting them in obtaining licenses and facilitating the acquisition of electric autos. Electric vehicles are more accessible to drive and maintain, especially for first-time drivers. By onboarding women, Namma Yatri creates self-employment opportunities and enhances the safety of women travelling by public transport—one driver at a time.

One app. Multiple Versions.

The journey of open mobility started with the Yatri app in Kochi for the city's cab drivers. Juspay aims to solve the problems of drivers, which are usually different in different states depending on the most widely used mode of transport. For example, the Yatri app is to the cab drivers of Kochi while Namma Yatri is the auto-driver’s lifeline in Bengaluru. Similarly, they launched the Yatri Sathi app in Kolkata with the Bengal Taxi Association. Namma Yatri remains a private for-profit venture, whereas the operations of the Yatri app (Kochi) and the Yatri Sathi app (Kolkata) were handed over to the respective state governments to run. These are seen as the governments’ to aid the taxi and cab drivers to counter the monopoly that rides aggregator platforms are increasingly being seen for.

Future Growth of Namma Yatri

Considering the rapid growth of Namma Yatri, Juspay's leadership believes the platform would benefit from becoming a separate entity with better funding prospects. The reins are set to be handed over to Magizhan Selvan (Mags), Juspay's Chief Product Officer, who spearheaded the development of the Namma Yatri app, alongside Shan MS, the Chief Growth Officer.

In our conversation with Mags, he expressed interest in helping budding entrepreneurs run a version of Namma Yatri in their respective locations, supported by their own infrastructure. For instance, a college student could clone the app to manage an auto drivers' network around their campus, making this an exciting and invaluable experience for future entrepreneurs.

Remaining true to its mission, Namma Yatri will continue to scale and create value for its users as it expands, reaching a broader audience.

(Fin)

Thanks to Mags (product head) and Ankit (ex-marketing head) at Namma Yatri for adding valuable insights to the story.

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