Is the Future of Ridesharing Apps in Bengaluru Decentralized?

Auto and Taxi Unions in Bengaluru Challenge Ola and Uber Amid Changing Dynamics

Auto and taxi unions in Bengaluru are in conflict with Ola and Uber due to reduced incentives for drivers and increased commission rates. As a result, many cab and autorickshaw drivers in Bengaluru’s tech hub are turning to Telegram and WhatsApp groups, as well as various zero-commission app-based aggregators, to compete with Ola and Uber.

The rise of zero-commission apps, supported by drivers’ unions, is presenting significant competition to the Ola-Uber duopoly, which is now struggling to retain drivers. The decreased availability of drivers on aggregator apps is leading to longer wait times for users.

Telegram and WhatsApp Duty Groups

These Telegram and WhatsApp groups, known as ‘duty groups,’ have been operational for over two years and are growing in popularity among drivers. There are two types of duty groups: one solely for drivers to pass on leads, and another that includes travel agents and representatives from tech parks and private companies posting intracity trip requests.

These groups offer a commission-free environment for drivers, with passengers paying only government-fixed fares. A typical cab request message might read: “Need a sedan, neat and clean vehicle with a white-uniformed driver. Ecospace Bellandur to Madhavara. Employees: 3. Time: 4:50 pm. Amount: Rs 750.” Drivers or admins then respond with relevant details.

Karnataka Chalakara Okkota and mParivahan

Karnataka Chalakara Okkota (KCO) is one of the unions facilitating such groups, with over 50,000 members across two Telegram groups. The mParivahan app is used to verify drivers’ credentials, ensuring compliance with required documents.

Union-Backed Apps and Competition

In November 2022, the Auto Rickshaw Drivers Union (ARDU) launched the Namma Yatri app in collaboration with Juspay, promoting a zero-commission model. Namma Yatri now boasts nearly 39 lakh registered users and 1.9 lakh drivers, having completed 4 crore trips and generating Rs 579 crore in driver earnings.

In June 2024, the Karnataka State Drivers’ Council, in partnership with Agnibhu Technologies and Brand Pride Mobility Pvt Ltd, launched the Nagara Metered Auto app, allowing passengers to book rides via a website, QR code, or WhatsApp.

Failed Initiatives and New Models

Previous attempts at creating alternative platforms, such as Namma TYGR and Rook, failed. However, newer initiatives like MetroMitra, although initially unsuccessful, have led to further developments in the zero-commission model.

Response from Ola and Uber

To reduce driver attrition, Uber launched Uber Pro, a rewards program offering credits for drivers’ life goals and discounted insurance premiums. Uber and Ola are also providing microloans and exploring subscription models to enhance the driver experience.

By leveraging zero-commission models and driver-friendly policies, Bengaluru’s auto and taxi unions are reshaping the ride-hailing landscape, challenging the dominance of Ola and Uber.