Google has invested in Moving Tech, the parent company of Namma Yatri, an Indian open-source ride-sharing app gaining market share from Uber and Ola with its no-commission model
Moving Tech, a Bengaluru-based startup, has secured $11 million in a pre-Series A funding round jointly headed by Blume Ventures and Antler, the company announced. Google participated in the round and has publicly committed to investing $10 billion in India.
Namma Yatri is an Open Network for Digital Commerce (ONDC) component. This interoperable initiative is supported by the Indian government and is designed to democratize e-commerce in the country. Namma Yatri’s application facilitates the connection between customers and auto-rickshaws and taxi drivers without imposing any fees on either party. Rather, the startup charges its driver partners a nominal monthly fee.
In contrast, Uber and Ola have declined to participate in the ONDC network for their primary mobility offerings and charge their driver partners as much as 25%-30% of the ride cost.
Magizhan Selvan and Shan M S, the co-founders of Moving Tech, disclosed to TechCrunch that they recognized an opportunity when they discovered the frustration drivers experienced with the current system.
Shan reflected on the decade-long duopoly that Uber and Ola have maintained unopposed in India, stating, “There was a dearth of differentiated approach.” He added that Moving Tech does not provide customer discounts or driver incentives but relies on providing legitimately beneficial service to its customers.
Selvan drove more than 500 auto-rickshaw rides to gain insight into the challenges faced by drivers. He stated that the startup’s governing principle is incorporating empathy into its services.