More money for partners and ‘auction’: InDrive’s weapons against Uber and 99 – 12/08/2022

The ride-hailing market is dominated by Uber and 99 in Brazil. InDrive wants to be the third way of travel apps, suggesting a greater transfer for drivers and greater price flexibility for passengers.

According to Thyerry Mendes, team leader and driver acquisition at InDrive, in 2022 the platform had a 70% increase in the number of rides and 50% in the number of registered drivers, compared to last year. For now, marketing has been through word of mouth and some advertising campaigns in the 100 cities where it operates.

InDrive offers three major advantages compared to other apps:

  • The driver keeps most of the ride value (90.5% for the driver, and 9.5% for the company) – at Uber and 99 the percentage that stays with the company can reach up to 40%;
  • The handler is not penalized if he refuses races;
  • The passenger can suggest a price for the trip, and the driver can make a counter-proposal, in a kind of “auction”.

“At the end of a show, if you suggest putting R$ 5 more in the amount, for example, you can get a car a little faster”
Thyrry Mendes, Team Lead and Driver Acquisition at InDrive

The company offers urban transport options (travel and comfort categories, with better cars and highly rated drivers), delivery, freight (goods over 20 kg) and intercity (for intercity transport). There are also tests in some places offering professional services, such as air conditioning and cleaning technicians.

With regard to the price of rides, the value suggested by InDrive is usually 10% lower than that of 99 and Uber without dynamic tariff. However, with the negotiation made between drivers and passengers, in the end the value can remain the same.

Platform performs intermediation; driver receives full payment

InDrive defines itself as a marketplace, and the company works differently.

The driver receives full money from the passenger via pix, debit card or credit card, and the transfer to the platform is done in a prepaid scheme.

Before starting to receive rides, the driver needs to make a transfer to InDrive, and this amount is deducted little by little as the driver receives money from trips.

InDrive application interface - Disclosure - Disclosure

InDrive application interface; solution wants to compete with Uber and 99 by offering a larger share of billing to drivers

Image: Disclosure

For example: a driver makes a deposit of BRL 100 to InDrive. Considering that this would be equivalent to the 9.5% that would remain with the platform, this amount will allow it to receive up to BRL 952.63 from passengers.

Why does it matter?

As the driver receives a larger share of the trip, there are usually few cancellations and some accept going to places that drivers from other apps do not go to, such as peripheral regions.

During negotiation, the passenger often offers an amount slightly above the suggested minimum value and gets the ride – in recent times, several Uber and 99 drivers have started to refuse rides because they think the value is not worth it, due to the high price of the fuels.

What about security?

InDrive charges drivers less, but arrives in a scenario where Uber and 99 have already spent millions investing in safety features. Among them, ways to certify the identity of drivers and passengers and even selfie requests, to ensure that the driver registered in the app is the same one behind the wheel.

The platform says it has security measures such as a panic button (which the passenger or driver can trigger in an emergency) and a feature to share the location of the race to a relative (to be used in a suspicious situation, for example). The company says it checks identity based on the CPF, in addition to checking criminal records and driver comments.

Adhesive car with the InDrive logo - Publicity - Publicity

Adhesive car with InDrive logo; service allows race price auction

Image: Disclosure

Uber says it has more than 30 million in Brazil; 99 claims to have over 18 million. InDrive, present in Brazil since 2018 with an operation that started in the Northeast, does not say its total. It only states that there have already been 21 million downloads of the app (sum of the user and driver options), 4.5 million of which this year alone.

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