Government plans to take on Ola, Uber with commission-free ONDC

The center plans to accept Ola, Uber with ONDC without commission

India’s government-backed open trade network has begun offering commission-free ride-hailing, a move that could shake up the dominant ride-sharing companies, Uber Technologies Inc. and its domestic rival, Ola.

Namma Yatri is now available on the Open Network for Digital Commerce, or ONDC, for the city of Bangalore and provides a three-wheeled auto rickshaw ride where neither the driver nor the rider pay any commissions. which pink.

The new service was announced at a time when users and drivers were unhappy about the lack of vehicles, unreliable service and high commissions charged by two popular taxi-hailing platforms.

The app currently has 45,000 drivers for auto rickshaw trips. The startup that supports it is planning to expand to other cities and offer multiple modes of transport including taxis, buses and urban rail. Nearly half a million users have used the Namma Yatri app for trips, ONDC CEO Thampy Koshy said during a media event on Thursday.

The nonprofit ONDC, established in 2021, is supported by the government’s commerce ministry with the goal of democratizing commerce. The mobile app is open source so rides can be integrated by multiple apps, including digital payment providers like Paytm and PhonePe.

In its first growth phase, ONDC enabled grocery and restaurant delivery in multiple cities to compete with Inc-owned Flipkart. and Walmart Inc. Its food delivery partners are newer and will take over Zomato Ltd led by Softbank Group Corp. and Tiger Global backing.

More than 25,000 grocery and food delivery partners are using the platform, Koshy said. “We are supporting thousands of restaurant deliveries every day and will soon start adding financial service providers,” he said.

So far, WhatsApp from Amazon, Google, and Facebook has ignored invitations to join the platform.

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