Google joins investors to support Indian open-source Uber competitor

Indian startup Namma Yatri, the parent company of open-source ride-sharing app Moving Tech, has gained Google's support in its bid to rival Uber and Ola in the country. Namma Yatri is disrupting the market with its no-commission model, connecting customers with auto-rickshaws and cab drivers without charging any fees for rides. Instead of taking a percentage of the fare, the startup collects a small monthly fee from its driver partners. This is reported by SSP.

Namma Yatri operates on the Open Network for Digital Commerce (ONDC), an interoperable scheme promoted by the Indian government to democratize e-commerce in the country. Uber and Ola, on the other hand, retain a significant portion (25-30%) of the ride cost as commission, and have opted out of joining ONDC for their primary mobility services. Moving Tech founders Magizhan Selvan and Shan M S recognized the opportunity to address the frustrations of drivers facing these challenges in the existing system.

M S explained that the decade-long duopoly of Uber and Ola in India lacked a differentiated approach. While they offered customer discounts and incentives to drivers, Moving Tech focuses on providing a genuinely useful service without these gimmicks. By infusing empathy into their services, the founders aim to foster a better experience for all users.

Since its 2022 launch, Namma Yatri has completed over 46 million rides across multiple Indian cities, including Bengaluru and Hyderabad. The startup was initially incubated by SoftBank-backed financial services startup Juspay. Remarkably, Namma Yatri currently operates with profits and does not foresee the need for significant capital raising.

India has made remarkable strides towards digitizing its economy and public services with initiatives like the "India Stack," which comprises open APIs for identity, payments, and data sharing. This government-led initiative facilitates a unified digital infrastructure to provide efficient and inclusive services to its 1.4 billion citizens.

As part of its $10 billion investment commitment in India, Google participated in Namma Yatri's $11 million pre-Series A funding round. The investment saw co-leadership from Blume Ventures and Antler. Karthik Reddy, a Partner at Blume Ventures, expressed enthusiasm about Moving Tech's transformative approach to mobility, highlighting the simplicity of its technology and robust product. Reddy added that the fund is pleased to support the exceptional team and their ambitious vision.

Moving forward, Namma Yatri plans to utilize the fresh funding to bolster its engineering and research and development teams. Additionally, the startup aims to expand its services to encompass a broader range of transportation options, including buses. With Google's backing and a dedicated mission to reshape mobility services in India, Namma Yatri sets its sights on becoming a formidable competitor in the market.