Ola, Uber Challenger Namma Yatri Tops 1 Crore Users Amid Tier 2,3 Expansion

Uber, Ola challenger Namma Yatri, an interoperable ride hailing app on the government-backed Open Network for Digital Commerce (ONDC), has crossed the milestone of 1 crore registered users, even as it is driving into newer Tier 2, 3 cities.

The ride hailing platform has completed 7.49 crore trips from several cities such as Bengaluru, Kolkata, Chennai, Kochi, Tumkuru and other states. This led to a total driver earning of Rs 1,206 crore as of January 18, 2025.

Namma Yatri which started with Bengaluru in November 2022 has expanded into several states including Tier II and Tier III cities such as Siliguri, Mysuru, Tumkuru, Bhubaneswar, Durgapur, Asansol, and Cuttack.

Read: Hope to See Some International Cities Using Our Tech Framework by 2025, Says Namma Yatri's Shan MS

Speaking to Outlook Business earlier, Shan MS, Chief Operating Officer of the company said, “We are now moving into phase two, where we will focus on markets often overlooked by larger players, particularly Tier II and Tier III markets. These markets are typically seen as small and unattractive, with low levels of digital penetration, especially in mobility.” 

Current data from Namma Yatri indicates that the company since its launch, completed 86.78 per cent trips in Bengaluru, the place of its origin as of January 18 while the lowest is in Cuttack where it started this month only. 

Previously Juspay-backed company had cab services only in Kolkata, Kochi and Chennai. While other places had auto services. Now, Namma Yatri expanded its cab services in Delhi in August 2024 and Bengaluru in April 2024. 

The prime attraction of the platform for drivers is its zero commission model. This is unlike other ride hailing apps such as Uber and Ola which charges a commission fee of around 20 to 40 per cent. Rather than a commission, the company charges a subscription fee. In 2023, the company launched two subscription plans for auto drivers: a daily fee of Rs 25 for unlimited rides or Rs 3.50 per trip for up to 10 trips, with additional rides included at no extra charge.

Read: Why Are Ride Hailing Platforms Like Namma Yatri, Uber, Ola Embracing a Zero Commission Model?

Shan told Outlook Business earlier that existing platforms treat drivers as mere resources, and drivers are unhappy with this treatment and the commission structure, leading to poor customer service. “To address these issues, we wanted to solve the root cause by taking a more empathetic, people-first approach. Consequently, we shifted from a commission-based model to a subscription-based model, giving drivers more earnings, ownership, freedom, and agency,” he added.

A white paper released by ONDC in December 2024, indicates that a zero commission model can increase a driver’s income by up to 30 per cent. This can be done by adding Rs 1.36 lakh annually per driver, amounting to a total of Rs 20,475 crore for 15 lakh drivers. ONDC recorded 5.30 million ride-hailing bookings in December 2024 which led to a driver income of $10.65 million. 

ONDC has been focused on improving mobility and increasing last mile connectivity. It has also tied up with multi-modal transport booking services such as redBus on its platform in various cities. ONDC also tied up with Google Maps to facilitate metro bookings in Kochi via Namma Yatri.