Emerging local mobility apps in Indian cities

This year in February, Ola & Uber temporarily shut their services in Guwahati. This decision was influenced by the driver unions who claimed that aggregators were harassing the drivers by charging exorbitant commission fees for rides booked. Two local cab operators, Pei India & AN2 were operational in the city instead.

Like in Guwahati, smaller upstarts, category-specific business models, & traditional players are emerging to break the duopoly of two giants. As urban mobility gradually recovers from Covid-19 pandemic's impact, companies like Rapido in the auto & bike segment & BluSmart with their electric car fleet in Delhi-NCR have joined the race. Many states, including West Bengal, Assam & Kerala, are developing their own app-based cab services, while many cities have also come up with their own local ride-hailing apps, like Kochi's taxi-service app ‘Yatri', which was launched by Kochi Metropolitan Transport Authority. The auto unions have also started developing their own apps to compete in this market like Peace Auto Union's app 'Rook Auto' in Bangalore & Ernakulam auto drivers Cooperative's app 'AuSA' in Greater Kochi. Local self-developed apps grant drivers increased autonomy and retain their earnings by eliminating commission cuts.

The Open Network for Digital Commerce (ONDC) has also expanded into the mobility sector by partnering with open-source platforms Namma Yatri & Yatra. Unlike traditional platforms, these partners do not charge any commission from drivers. ONDC's open mobility initiative aims to allow customers to book rides from multiple app, & in future, integrate various modes into a single platform. Currently, the project is in the Alpha phase in 181 cities in India.

This evolving landscape in the mobility market of small cities reflects the growing opportunities for diverse players & competition. Entry of new companies, state-backed initiatives & localized services indicates a dynamic & disruptive shift in the sector, providing commuters with more choices & potentially reshaping the market dynamics in the long run.

Does your city have app-based mobility choices?