'Zero commission': Rapido to charge auto drivers Rs 5/day in Bengaluru

Bengaluru: Ride-hailing firm Rapido says it will no longer levy any commission on auto-rickshaw drivers using its platform in Bengaluru. It will instead charge them a login fee of Rs 5. 

On Tuesday, the Bengaluru-headquartered firm launched its SaaS (Software as a Service) model for auto drivers, whom it calls captains. 

"Rapido shifts from the aggregator commission-led model to a lifetime zero commission for auto captains, reducing the burden of exorbitant commission rates and empowering them to take control of their earnings. Under this model, Rapido plays no role in deciding the price point, making the service transparent and inclusive for all stakeholders," it said in a statement. 

Speaking to DH, Rapido co-founder Pavan Guntupalli stressed that the aim was to increase the share of online auto rides. 

"Out of more than two crore daily auto rides nationwide, only 20 lakh take place online," he said. 

Guntupalli said Bengaluru was an important market for Rapido as the city accounted for a significant portion of its nearly six lakh auto rides per day. "The growth in Bengaluru has been exponential. From 35,000 in January 2023, we now facilitate more than one lakh auto rides," he said. 

He promised that the model would also offer "competitive fares" to customers. 

Guntupalli listed driver-friendly measures for auto captains, including instant payments and seat belts. 

Many auto drivers in Bengaluru are unhappy with Rapido's bike taxi business, which they say is "illegal" and "snatching" their livelihood. 

Guntupalli said less than 15 per cent of auto rides competed with bike taxis, which are usually preferred for last-mile links. 

Rapido introduced the zero-commission model for its cab ride business, which it launched last year. Cab drivers attached to Rapido do not have to pay any commission if their monthly earnings are less than Rs 10,000. 

While Guntupalli insisted that Rapido was "legally compliant", he acknowledged that the firm's licence application is still pending with the Karnataka Transport Department. He said the firm could operate because of a court stay on coercive action by the department. 

Rapido's bike taxi service is available in three cities in Karnataka (Bengaluru, Mangaluru and Mysuru) while its auto and cab services can be accessed in Bengaluru and Mysuru. 

Rapido has been trying to ward off competition from Namma Yatri, which collects a daily subscription fee instead of commission. 

Namma Yatri facilitates 1.3 lakh auto rides daily in Bengaluru as against Rapido's one lakh.