As Uber, Ola continue tussle with state govts, cabbies try different route

Ride-hailing giants Ola and Uber are challenging order by States to ban autorickshaw rides through companies' apps; in the meanwhile alternative government-backed taxi/auto aggregators are coming up

At a time when the business of commuters booking autorickshaws and cabs via apps is under a cloud due to the tussle between players such as Uber and Ola with state governments, alternative government-backed taxi/auto aggregator services are coming to the fore.

In August earlier this year, the Kerala government flagged off one of India’s first online taxi aggregator services owned by a state government. The project, named 'Kerala Savaari', is an Uber/Ola-like application that promises passengers safe and convenient rides with much more reasonable remunerations for taxi and auto drivers.

The first phase of the project was implemented in the city of Thiruvananthapuram as a 3-month pilot project.

“At the end of the pilot, the platform will be evaluated by a committee to determine the next phase of the project after which the service will be extended to Ernakulam, Kozhikode, Kollam, Kannur and Thrissur,” Sajeev Kumar V from the Kerala Motor Transport Workers’ Welfare Fund Board told Business Standard.

The app has been developed by IIT Palakkad with a budget of Rs 30 crore, with its implementation being helmed by the Motor Workers Board and Labour Department. Currently, over 700 autorickshaws and taxi drivers are part of the platform.

Compared to private cab aggregators that charge around 20-30 per cent commissions, for Savaari, Kumar says, the Transport Department has fixed a service charge of 8 per cent for now. Six per cent of the commission goes to IIT Palakkad while 2 per cent goes towards the government and schemes for drivers.

Drivers additionally go through a police verification and undergo training on how to drive, behave with passengers, among other things before being onboarded to the platform, he added. For the safety of passengers, panic buttons are available on the application itself. The button gives passengers access to the police control room, fire services and motor vehicle department directly.

For enhancement of the project, the Transport Department has submitted a draft policy to the government for approval, after which further details would be ironed out, Kumar revealed.

The platform was set to be evaluated one week after its implementation. “We have received a very positive customer response for Savaari until now, with the app having over 11,000 downloads so far,” Kumar said.

Consumers can download the Savaari app from Google Play which, Kumar says, is fully functional now. A 24-hour call centre managed by the Motor Workers Welfare Board has also been set up, which will attend to users and drivers. The government will also install GPS on vehicles at subsidized rates, which will take place in a phased manner.

According to Kumar, Savaari faced many hurdles in implementation. “We have faced many challenges, be it technical or on-ground. But we are working out issues day by day to ensure a smooth experience for users,” he said.

But not all initiatives see such success. Goa had, in 2018, also started its own app-based taxi aggregator called Goa Miles. However, the service did not last after facing protests from private taxi players and complaints from consumers over refusal of drivers to take rides and last-minute cancellations.

Early this month Karnataka also witnessed two new alternative apps in the city of Bengaluru -- 'Namma Yatri' by the Autorickshaw Driver Union (ARDU) and 'Rook' by the Peace Auto Union.

The Karnataka High Court last month asked the state government to meet cab aggregators Ola and Uber to reach an understanding on the fare charge for autorickshaw services through apps. It issued directions related to the petitions by ANI Technologies (owner of Ola) and Uber.

Ola and Uber moved the court challenging an order issued by the State Transport Department effectively banning autorickshaw rides through the companies' apps. The government declared such services illegal following multiple complaints of overcharging.

Namma Yatri aims to compete with mobility players such as Ola and Uber. The app was launched on November 1 and has recorded over 50,000 downloads so far. It is right now in the beta stage and has two versions--one for commuters and the other for the autorickshaw drivers.

The app has been built under the Union government’s Open Network for Digital Commerce (ONDC) model. Beckn Foundation, which is supported by the non-profit Foundation for Interoperability in Digital Economy, co-founded by tech entrepreneur Nandan Nilekani, has provided the technology tools for the app.

Beckn protocol specifications can be implemented by business-facing, customer-facing platforms and governments to create integrated digital networks across diverse sectors like e-commerce and mobility. ARDU has also roped in payments firm Juspay Technologies to build and customise the app based on various requirements.

ARDU general secretary D. Rudramurthy has reportedly said that the aim to develop the Namma Yatri app is to provide a livelihood for auto drivers with fair pricing and without any middlemen as the earnings would directly go to the drivers. ARDU had claimed that the app is seeing an average of 1,000 trips a day. The app claims that it collects a government-approved minimum fare of Rs 30 for the first two kilometres, along with an additional Rs 10 as a convenience or book fee, which will be paid to the driver.

However, many commuters complained on social media that the app is charging more fare compared to the fee which was charged by platforms such as Ola and Uber.

“Tried out the hyped-up Namma Yatri, and a quick comparison with fares of Ola and Uber, just to realize that Namma Yatri is the most expensive! Cheers to the archaic agenda of our admin, another rhetoric! Still awaiting a sustainable solution,” tweeted Soumya Mandal in Bengaluru.

Some of the autorickshaw drivers said that they are trying to come onboard the Namma Yatri app, but are facing various technical glitches. They said that they have decided to focus on offline pick-up of the passengers from the street or use Ola and Uber apps.

State government officials who didn’t wish to be quoted said that the apps like Namma Yatri are still in the infancy stage and software development is not complete yet and it would take time for these platforms to scale up.

Commuters such as Anunaya Hebbar said on Twitter that Namma Yatri app was out of order whenever she tried to book it. She said because of the Namma Yatri App in Bengaluru, auto drivers are not accepting requests on Ola, Uber and Rapido and one has to either pay a hefty amount and go in a cab or choose a bike.

Peace Auto Union also launched a ride-hailing app called Rook on November 9, the birthday of the late Kannada actor Shankar Nag, which is observed as Autorickshaw Day by drivers in the state. The union has about 10,000 registered auto drivers in the city. It said the app would be operated based on the fares set by the government.

Uber recently warned it could limit its autorickshaw ride-hailing service in the city if a tussle with the state government persists. Uber and other companies are operating in Bengaluru under a stay order granted by the Karnataka High Court after the government banned aggregators from running autorickshaws, or autos.

More than 1,000,000 Bengaluru residents use Uber Auto monthly and some 50,000 drivers supplement earnings by taking bookings on the company’s app. Nitish Bhushan, head of central operations, Uber India & South Asia, in a recent interview, said that Uber’s service allows customers doorstep pickups and is popular for that reason.

The firm said that the current fixed metered fare does not adequately compensate drivers for the additional distance travelled and time spent in picking up a passenger from their doorstep. Since removing the doorstep compensation, Uber said the cancellations have increased by over 50 per cent in the city, as availability reduces and drivers turn down trips that are not economically viable for them.