Global ride-sharing firm InDrive enters Indy market with twist on model

The ride-hailing company InDrive, which operates in 46 countries but just entered its first U.S. market last year, is now doing business in the Indianapolis area.

Indianapolis is the third U.S. market for InDrive, which offers what it calls a peer-to-peer marketplace that allows riders and drivers to negotiate prices for specific trips via InDrive’s mobile app. The company launched in Miami in July 2023, and in Tallahassee, Florida, earlier this month.

Adam Warner, the Atlanta-based head of InDrive’s U.S. operations, said he views Indianapolis as an important part of the company’s U.S. expansion plans because success here can translate to many other markets of similar size and character.

“If I can figure out how to win you guys over, I’ll be able to apply it to other cities,” Warner told a small group during a launch party Thursday evening at Union 50 restaurant downtown.

Before joining InDrive, Warner worked for competitor Lyft, serving as that company’s Midwest regional operations director.

Warner told IBJ that he’s already developed a list of about a dozen other U.S. cities that could be future expansion targets for InDrive. That list includes Bloomington, South Bend and Lafayette, as well as cities in Ohio and Texas. Nothing is set in stone yet, Warner said, but those markets are all on his radar as potential new markets as InDrive continues its U.S. expansion.

InDrive is not involved in setting ride prices. Instead, it leaves that negotiation to individual drivers and passengers. The company makes money by taking 29.7% of the amount charged for each ride—a percentage that covers InDrive’s commission, plus a processing fee and the cost of commercial insurance coverage.

Drivers get to choose which trips and fares they will accept. Warner said drivers are not penalized if they decline to accept a trip.

This setup, Warner said, results in rates that are, on average, between 20% and 40% lower than competitors Lyft and Uber, while also allowing drivers to earn more from each trip.

InDrive was founded in Russia in 2013, although the company pulled out of that country and now has its global headquarters in Mountain View, California. InDrive also has offices in Cypress and Kazakhstan, with more than 2,700 global employees. It currently operates in 750 cities in 46 countries, including Pakistan, Colombia, Egypt, Peru, Morocco and Mexico, among others.

The company’s founder and CEO is Arsen Tomsky.

Warner said Tomsky’s personal business philosophy explains why the company waited for so long to enter the U.S. market.

Tomsky’s goal in launching InDrive, Warner said, was to “challenge injustice” by offering people a chance to earn fair wages in underserved and developing markets.

“He focused on building the business in emerging markets—not Europe, not the U.S.,” Warner said.

But now that InDrive is already active in so many of those emerging markets, Warner said, the time was right to enter the U.S.

In the Indianapolis market so far, Warner said, InDrive has recruited a pool of 1,600 drivers. Its Indianapolis coverage area includes the city itself plus its surrounding suburbs.

The company can’t yet offer service to and from Indianapolis International Airport, but Warner said he is seeking Indianapolis Airport Authority approval for InDrive to operate there.

InDrive also doesn’t yet have an Indianapolis office to oversee local operations. That will come later, Warner said. He wants to grow the business here first, which would mean capturing 25% to 30% of the local ride-hailing market before InDrive opens an Indianapolis office.

That might take a year or two, Warner said. For now, he’s focused on attracting more local drivers and local customers, letting them know about the company and persuading them to try it.

And that, Warner said, won’t happen overnight. “It’ll take some time. Change is difficult.”

As part of that effort to build its local business, InDrive says it won’t take a commission on Indianapolis rides between now and Oct. 31, allowing drivers to keep 100% of their fares.

In addition to its ride-hailing service, InDrive also offers several other services in certain markets, including hire-a-handyman services, couriers and freight transport. Warner said Indianapolis is launching with ride-hailing only, but it’s possible some of those other services could be added locally in the future.