May 09, 2024
India’s fintech company, Paytm, on Thursday launched its auto-rickshaw service in India via the Open Network for Digital Commerce (ONDC).
Paytm started as a prepaid mobile and DTH recharge platform in 2010. Later, it launched postpaid services as well and now, it is also taking a part in expanding the ONDC by providing services in various categories that include food delivery, fashion, groceries and electronics.
The Noida-based company is now offering ride-hailing services in India, aiming to provide customers with a convenient and affordable way to travel. The service is in the testing stage and is available for limited Paytm users currently.
Read more: All about Paytm
The ONDC helps to connect and interoperate different e-commerce platforms with each other, making it vast for customers to avail services online. It also helps to reduce the costs associated with logistics, as e-commerce platforms are no longer required to manage their own supply chains. However, this initiative by Paytm can be challenging for Uber and Ola.
Once a ride is booked, the Paytm app shows that the service is powered by Namma Yatri, a ride booking service app, which has provided 3.73 crore rides in the last couple of years in some major cities of India. In the last month, it started offering cab services as well. Reports suggest that the auto-rickshaw service will be available in some cities of India including, Dehli, Chennai and Bengaluru. However, it is more likely to expand the service in other cities of India in coming months.
