New cab hailing startups offering better incentives to drivers

Competition from new startups is forcing established ride hailing companies to lower their commission structures for drivers. Rapido bike taxi, backed by Swiggy, scrapped its commission model to introduce a subscription fee for cab and auto drivers. This amounts to ₹9-29 per day. California-headquartered inDrive charges a 10-12% commission, less than half that of Uber and Ola’s 25-30% fee.

Namma Yatri, backed by ONDC, offers its Software as a Service (SaaS) to auto drivers for ₹25 per day or ₹3.5 per trip for up to ten rides and free of cost afterwards. This works as a loyalty programme and lures drivers to spend more time on the app to get more rides and an ROI on the daily fees.

Uber launched the Uber Pro programme, offering drivers milestones-linked benefits like cheaper vehicle maintenance, motor insurance, area preference, and micro-credit offerings. It also reduced its peak-hour commission by 5-7% to incentivise drivers.