Several new ride-hailing apps have emerged in India in the past year, offering services in various segments such as cabs, autorickshaws, and bike taxis. Incumbent operators Uber and Ola are now facing competition from these new players, who aim to address customer service and driver-partner satisfaction issues that larger players have struggled with.
New apps like InDrive, Namma Yatri, Yaary, BluSmart, and Rapido are looking to fill the gaps left by Uber and Ola, according to an ET report. Those familiar with the matter stated that addressing competition has become a regular topic in management discussions at established operators Uber and Ola. However, the challenge for these new entrants is whether they can scale their operations to compete with the established players.
InDrive, a California-based company operating in over 40 countries, launched in India last year with a zero-commission model for drivers. However, it has recently started charging a commission. Bengaluru-based bike taxi platform Rapido has also entered the cab services market, directly competing with Uber and Ola. Rapido plans to offer zero commission to a limited number of drivers who join their platform.Uber and Ola have taken steps to address some of the service problems they faced, such as driver cancellations and retaining drivers. Uber introduced a feature where drivers can see the destination and estimated fare before accepting a ride, reducing cancellations. Ola launched a new category called Prime Plus, which guarantees top-rated drivers and no cancellations.
As new platforms emerge, companies are also focusing on reducing driver churn to other platforms. Uber has introduced a rewards program to improve driver loyalty. However, with newer platforms offering zero-commission incentives, existing companies may find it challenging to retain drivers on their platforms.
New apps like InDrive, Namma Yatri, Yaary, BluSmart, and Rapido are looking to fill the gaps left by Uber and Ola, according to an ET report. Those familiar with the matter stated that addressing competition has become a regular topic in management discussions at established operators Uber and Ola. However, the challenge for these new entrants is whether they can scale their operations to compete with the established players.
InDrive, a California-based company operating in over 40 countries, launched in India last year with a zero-commission model for drivers. However, it has recently started charging a commission. Bengaluru-based bike taxi platform Rapido has also entered the cab services market, directly competing with Uber and Ola. Rapido plans to offer zero commission to a limited number of drivers who join their platform.Uber and Ola have taken steps to address some of the service problems they faced, such as driver cancellations and retaining drivers. Uber introduced a feature where drivers can see the destination and estimated fare before accepting a ride, reducing cancellations. Ola launched a new category called Prime Plus, which guarantees top-rated drivers and no cancellations.
As new platforms emerge, companies are also focusing on reducing driver churn to other platforms. Uber has introduced a rewards program to improve driver loyalty. However, with newer platforms offering zero-commission incentives, existing companies may find it challenging to retain drivers on their platforms.
During a month-long campaign from November 15 to December 15, ride-hailing platform InDrive reported a fivefold increase in driver registrations and more than a fourfold surge in the number of trips on its platform.
ONDC factor
The government-backed Open Network for Digital Commerce (ONDC) has allowed mobility platforms to become aggregators, leading to competition in the auto rickshaw category. Regional platforms like Namma Yatri and Yaary have partnered with driver unions to onboard drivers.
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However, conflicts between platforms and unions, like the recent dispute between Namma Yatri and the Auto Rickshaw Drivers Union in Bengaluru, highlight potential challenges for such initiatives.