Ola & Uber get a competitor, Drife; a new blockchain-based cabs services

(The article has been updated after receiving customer reviews on the usage of Drife) 

The online taxi services market in India was valued at INR 30.72 billion in FY 2020 and is predicted to increase at a CAGR (Compound annual growth rate) of 12.93 percent between FY 2021 and FY 2025, reaching INR 55.15 billion by FY 2025, as stated by a report from Statista. But still drivers face problems related to the centralised commision charged from them, given the duopoly of Uber and Ola. But did anything came to their rescue so far? 

Well, the growing concerns related to highly charged commission from the drivers led to the birth of a Bengaluru-based startup, named Drife in 2021. According to the founders of the app, the idea behind this startup was to build the ecosystem of ride hailing apps with zero commission taken from drivers, and to push the concept of open governance, and transparency. 

On this the CEO of Drife, Firdosh Sheikh stated, “Ride-hailing companies are billion-dollar firms but their drivers still struggle to make ends meet. The most worrisome part is the existence of centralised parties manipulating the system for their profit motives. She continued to say, "This shows how broken the system is. This is where Drife comes into the picture to fix the broken pieces." 

According to Firdosh, the ride completes 1,000 rides per week and can be easily downloaded on its Android and iOS apps. 

To understand this, I reached out to Drife’s COO, Surya Ranjith, who provided me with valuable insights on their current operations.  

How does the app work? 

"People have tried their hands on combining Uber on the blockchain, but decentralisation from the start won't address any issues by magic. Decentralisation ought to take place in stages. First, the application's computations and algorithms use smart contracts to achieve complete transparency for fair ride allocations. Then, through the franchise model, operations are decentralised,” according to Firdosh, CEO of Drife.

Our special matching system (based on ratings) searches for all qualified drivers nearby the consumer and displays the user request to them. Each driver eager to accept the ride has the choice to quote a greater or lower sum for it. 

The users can then view all bids made by drivers and select the driver of their choice after viewing all bids. Drivers cannot change an already-placed bid. These extra measures prevent drivers from calling users to inquire about the destination, the cost of the transport, etc., hence reducing cancellations. 

Before taking a ride and quoting the price, drivers are fully aware of the details related to the ride. In an effort to be fair to both users and drivers, she explains, we let them decide the cost of a trip rather than setting it for them. 

In order to ensure the transparency in trip fares, the base pay is calculated on the basis of the tariff rate set by the local government, followed by the distance and time involved. The fare of the ride is not dependent on the existing supply and demand situation. 

What makes Drife different from their competitors? 

Drife is a ride-hailing platform that operates in India. Some of the major competitors of Drife in the Indian ride-hailing market include Uber, Ola, Rapido. We have come up with the idea of removing commissions that have become predatory to drivers’ income and introducing subscriptions, All of which serve to bring more money into the driver’s hands and for customers, we charge nothing extra as to what has been fixed by the government. 

What are the consumer-related benefits provided by Drife that makes it get an edge over Uber or Ola?

Apart from being a surge free platform, Drife helps not only in bringing transparency into the entire customer base but also in giving them the freedom to choose among the drivers they get matched with. With Drife, customers can choose their fare along with the ride. 

What are the steps taken for customer’s security?

Drife has implemented several safety features, such as real-time ride tracking, SOS alerts,a 24/7 support team and 24/7 monitoring rides to ensure the safety of its passengers and drivers. One important achievement is the response time for a customers callback request is less than 5 mins on average

What blockchain is Drife leveraging? 

Drife is currently leveraging Polygon and Binance Smart Chain and is working on developing its own Cosmos-based Layer-1 network for faster throughput, low costs, customisability, and modularity.

What is the incentive model for the company? Do you feel it's a sustainable model in the long run?

“For customers, referring their peers to Drife can help them earn rewards that can be used to pay for future rides on the platform,” mentioned Ranjith in the interview. By referring drivers to Drife (cross referral), customers can also help to grow the platform's user base, which can lead to shorter wait times, more drivers, and an overall better experience for everyone.

For drivers, referring others to Drife can help them earn additional income. Drivers have the potential to earn a steady stream of passive income simply by referring others to the platform. Additionally, as more riders sign up for Drife, drivers may see an increase in the number of ride requests they receive, which can lead to more earnings.

Overall, the Drife referral model provides an incentive for both customers and drivers to refer others to the platform, which can help to grow the user base and create a more efficient and convenient ride-hailing experience for all.

With no commission charged from drivers, the startup earns revenue in other ways. It charges its driver-partners a nominal monthly subscription fee of Rs 2,500, which gives them access to the platform to accept, bid for, and execute rides. 

Besides this, our company is working on a franchise model where people in other cities can potentially run Drife’s operations. Building tech around ride-hailing in new cities is lucrative but exhausting, hence we select the best possible parties that can run operations elsewhere. We have a revenue-sharing model in place where we receive a part of the subscription fees drivers will pay to the franchise owners. 

Future prospects of Drife, concerning auto cabs launch

“Drife works in a unique way where any one who is eligible can own its franchise in their particular city, and 2023 is the year where Drife is going to start their franchise access in multiple cities in and outside India,” said Ranjith. 

The company is further planning to enter into the space of auto-rickshaw launch soon, given the high demand of customers for their shorter trips, which will be followed by interesting rewards, transactions and earning features. 

Overall, the Drife referral model provides an incentive for both customers and drivers to refer others to the platform, which can help to grow the user base and create a more efficient and convenient ride-hailing experience for all.

Is it really worth using? 

Since Drife is currently available in Bengaluru, I asked for some user feedback and was shocked by their comments on the price offered in comparison to Ola and Uber, its competitors. The customer also highlighted other factors related to cancellation of the cab. 

         Users could not cancel the cabs, ever after several attempts 

The customer was unable to book the cab at a lower price for almost two days  

Difficulty faced in booking the cab for 3 kms of distance, even after increasing the amount to Rs 100 

          The cab got booked in Rs 200 for 3.8 Kms of distance, which is almost double the amount of Ola and Uber 

Further clarification given by Co-Founder and COO of Drife, Surya Ranjith on the pricing related issue