Google Backs Indian Open-Source Uber Rival
Namma Yatri gains momentum with Google's support, disrupting the ride-sharing market in India with a no-commission model.
16 July 2024
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Savleen Kaur
Namma Yatri connects customers with drivers without charging commission fees, collecting a small monthly fee from drivers instead.
The app operates on the Open Network for Digital Commerce (ONDC), supported by the Indian government to democratize e-commerce.
Google, Blume Ventures, and Antler have invested in Namma Yatri, with plans to expand the startup's engineering, R&D teams, and transportation offerings.
Google has joined other investors in backing Moving Tech, the parent firm of Namma Yatri, an open-source ride-sharing app in India. Namma Yatri is gaining market share from Uber and Ola with its unique no-commission model, connecting customers with auto-rickshaws and cab drivers without charging either party for rides. Instead, the startup collects a small monthly fee from its driver partners.
Namma Yatri operates on top of the Open Network for Digital Commerce (ONDC), an interoperable scheme supported by the Indian government. This initiative aims to democratize e-commerce in the world’s most populous nation. Unlike Uber and Ola, which take 25-30% of the ride cost, Namma Yatri provides a more driver-friendly platform, leading to increased satisfaction among drivers.
Moving Tech co-founders Magizhan Selvan and Shan M S saw an opportunity after hearing drivers' frustrations with the existing ride-sharing giants. "There was a lack of differentiated approach," Shan M S noted, reflecting on the decade-long dominance of Uber and Ola in India. Moving Tech doesn't offer customer discounts or driver incentives, relying instead on providing a genuinely useful service.
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Selvan personally drove over 500 auto-rickshaw rides to understand the challenges faced by drivers. This hands-on approach helped shape the startup’s mission to infuse empathy into its services. Namma Yatri is now operational in over half a dozen Indian cities, including Bengaluru and Hyderabad, and has completed over 46 million rides since its launch in 2022.
Originally incubated by Juspay, a SoftBank-backed financial services startup, Namma Yatri has achieved operational profitability and does not require significant capital to sustain its operations. India has been pushing to digitize its economy and public services through initiatives like the "India Stack," a set of open APIs for identity, payments, and data sharing. The success of the Unified Payments Interface (UPI), processing over 11 billion monthly transactions, demonstrates the potential of such government-led initiatives.
Google, which has pledged to invest $10 billion in India, participated in Namma Yatri’s $11 million pre-Series A funding round. Blume Ventures and Antler co-led this investment. Karthik Reddy, a Partner at Blume Ventures, praised Moving Tech for its innovative approach to mobility, highlighting the simplicity and effectiveness of its technology and product.
Namma Yatri plans to use the new funds to expand its engineering and research and development teams. The startup is also looking to broaden its offerings to include more types of transportation, such as buses, according to its founders.
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