Urban Transport and Yatri
Elevator Pitch
Problem
The taxi market is worth about USD 21bn a year and expected to rise to USD 40bn by 2029. Platform providers Ola and Uber have about 80% market share.
Taxi drivers find the commissions in these platforms high and that the platforms control access to customers.
Customers have a limited choice, including the absence of intermodal transport options.
Solution
The Yatri app offers an alternative to existing platforms. It is an open platform that allows drivers to connect directly with customers. Underpinned by the Beckn e-commerce protocol, Yatri creates a market place, which is:
- Open to all market participants, including incumbent platforms like Uber and Ola.
- Digitalised for easy access using mobile phones.
- Interoperable to enable access from other mobility apps.
- Gives users control over their own information.
In the Yatri app, customers select taxi drivers of their choice without facing surge pricing, while drivers have control of their business model and do not pay high commissions for access to customers.
Big Wins
- Potential to expand significantly taxi market.
- Broadens app coverage to include other modes of transportation, including trains.
Implementation :
Milestones
- Taxi driver companies, taxi drivers’ associations, and taxi drivers’ unions in the city of Kochi hatched the idea of building an open mobility network in response to frustration over the duopoly of Uber and Ola.
- Driver associations lobbied the Kerala government, which in 2019 passed the Kerala MTA Act that supported legislation for open mobility networks.
- Justpay built the Yatri ride app wich was launched in Kochi in 2020.
- Yatri has now rolled out in 9 major Indian cities, including Bangalore, Kolkata, Hyderabad, Delhi, Mysore, and Tumkur.
- 270m rides, registered 4.9m customers, and enabled 210,000 drivers, who have so far earned USD 4bn through the app.
- Mobility-related transactions comprise over 50% of all transactions on the Indian commerce platform ONDC.
Challenges
- App needs further development: technical glitches and fewer features than incumbent apps.
- Tension between Juspay and taxi associations over app functionalities.
- Customer service.
Next Steps
- Improve service quality.
- Further incorporate intermodal services.
NETWORK GOVERNANCE :
Governance
- Yatri is owned by fintech company Juspay, which operates a subscription-based model, where users pay a monthly fee for unlimited rides within a certain area.
- Use of Yatri software or mobile applications as well as Yatri’s use of driver and customer information are governed by the Information Technology Act of 2000.
Grievance
- Grievances are addressed to a dedicated Grievance Officer within the Department of Information Technology and Electronics.
Data Policy:
- All information including personal information collected can only be retained by Yatri for as long as is permissible under the Information Technology Act of 2000.
- Users have the right to access their profile information at any time to add, remove or modify the information they have provided to Yatri.
- Yatri users may request deletion of their accounts at any time and Yatri may only retain user data after a deletion request due to legal or regulatory requirements or for reasons stated in the Information Technology Act of 2000.
Source: Preliminary research carried out by Cambridge University, JBS. Please note that use cases are evolving.
