Paytm, a major player in the fintech industry, is venturing into the ride-hailing sector by providing auto-rickshaw services in cities such as Delhi, Bengaluru, and Chennai. This move, facilitated by the Open Network for Digital Commerce (ONDC), aims to disrupt the dominance of Ola and Uber in the Indian market, the media has reported.
Paytm Ride-Hailing Feature In Testing Phase
The ride-hailing feature within the Paytm app is currently in the testing phase and is accessible to a limited number of users.
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Over the last couple of years, the fintech giant has methodically tested and implemented the Open Network for Digital Commerce (ONDC) across various e-commerce sectors, including food delivery, grocery, fashion, and electronics.
According to a report by Money Control, which cited a source familiar with the development, “There is a lot of software testing and integration that goes into each rollout. There is no reason why Paytm will not also get into cab bookings like Ola and Uber as well at a later stage.”
When users book an auto through the Paytm app, they will notice that the feature is labeled as ‘Powered by Namma Yatri’, serving as the seller-side app in the transaction. Namma Yatri, backed by Juspay, operates various consumer-facing apps dedicated to ride-hailing on the ONDC platform.
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Over the past few years, Namma Yatri has facilitated 3.73 crore rides across seven cities, such as Bengaluru, Delhi, Kolkata, and other metropolitan areas.
While the majority of these rides were auto-rickshaw journeys, the company is now expanding into cab bookings across multiple cities. This expansion comes as Namma Yatri nears the completion of its Series A funding round, targeted at $10-15 million.
What Is ONDC
ONDC operates as an open technology network built on open protocols, facilitating local commerce across various segments including mobility, grocery, food ordering and delivery, hotel booking, and travel. It allows any network-enabled application to discover and engage with these segments.
