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Paytm Drives into Ola, Uber Lane for Auto-rickshaw Bookings via ONDC Route
Fintech major Paytm is venturing into the ride-hailing sector by providing auto-rickshaw rides in cities like Delhi, Bengaluru, and Chennai through the Open Network for Digital Commerce (ONDC). ONDC aims to challenge the dominance of Ola and Uber in the market.
The ride-hailing feature on the Paytm app is currently in the testing phase and accessible only to select users. Over the past two years, Paytm has gradually implemented ONDC in various e-commerce categories, including food delivery, groceries, fashion, and electronics.
Once an auto is booked on the Paytm app, it is powered by Namma Yatri, which serves as the seller-side app in the transaction. Namma Yatri has enabled over 3.73 crore rides in seven cities, with most being auto rides. The company is also initiating cab bookings across cities.
Namma Yatri generates revenue through a subscription model for drivers rather than per-ride commissions. However, buyer-side apps may charge drivers a fee per ride for finding customers.
The ONDC features on the Paytm app are operated by PAI Platforms, a separate entity. Paytm founder Vijay Shekhar Sharma backs PAI Platforms, although the fintech company does not hold any stake in it.
Sharma has expressed Paytm's commitment to onboarding at least 10 million merchants on ONDC by the end of 2025. Meanwhile, Pincode, a shopping app on ONDC launched by Paytm's rival PhonePe, has exceeded 1 million downloads on the Google Play Store.
Paytm's previous venture into e-commerce, Paytm Mall, faced challenges. However, ONDC has sparked renewed interest among tech companies to explore e-commerce opportunities.
Several tech unicorns, including Ola, PhonePe, Meesho, and Shiprocket, have joined the ONDC platform, aiming to break the dominance of established players like Amazon, Flipkart, Zomato, and Swiggy in online retail.
The monthly volume of retail purchases on ONDC has surged six-fold in the last six months, reaching 3.6 million in March compared to over 600,000 in September last year.
Source: Paytm drives into Ola, Uber lane for auto-rickshaw bookings via ONDC route