India’s competitive mobility market is soon to witness a new ride-booking platform. After Bharat Taxi, Nembharat is preparing for launch with a business model that promises to eliminate driver commissions and surge pricing for passengers, positioning itself as a direct challenger to established ride-hailing players like Uber and Ola.
World Economic Mobility Limited (WEML) has announced that it will roll out the Nembharat service in India, though it has not yet offered a concrete launch date. Backed by the Narayanihiti Trust, Nembharat is billed as a “prepaid and cashless” ride-hailing service that is designed to address the “lack of income predictability for gig workers,” according to WEML.
Zero commission, no surge pricing promise
In a release shared with the media today, WEML says it will not charge drivers any commission or subscription fees, which is to say that drivers who are onboarded by Nembharat can potentially retain their full earnings from each ride. For riders, WEML is guaranteeing reasonable fares without surge pricing through a prepaid and cashless system.
Through Nembharat, WEML aims to reshape the country’s mobility sector which, in its own words, is currently marred by “driver strikes over low earnings and passenger complaints regarding safety and unpredictable fares.” WEML hasn’t disclosed regions and locations where it is planning to run the Nembharat service, but it speaks of building a “national transport network.”
A couple of concrete details that it is sharing at this point in time though is that Nembharat will integrate various transport modes including cabs and auto-rickshaws and that its system aligns with the Central Consumer Protection Authority (CCPA) guidelines to “balance workforce standards with consumer protection.” Safety protocols such as potential tie-ups with law and local police authorities haven’t been explicitly confirmed as well.
It is worth pointing out that the Nembharat announcement is coming hot on the heels of Bharat Taxi launch in the country. Even though it might seem like the two have somewhat similar ambitions, the two are starkly different in terms of business model. Bharat Taxi is a cooperative service backed by some of the same people who are behind Amul. It is not owned by any public or private company, and it is backed by the government, more specifically the Ministry of Cooperation. Operational in Delhi and parts of Gujarat, Bharat Taxi is offering an 80-20 percent revenue share where drivers can become part of the board and play a key role in decision-making. Bharat Taxi does promise reasonable fares and no surge pricing for riders, which can be considered as a common thread between itself and Nembharat. More details about Nembharat should be revealed closer to launch.
