The ride-hailing feature on the Paytm app is still in testing mode and visible only to some users.
When an auto gets booked on the Paytm app, it says that the feature is ‘Powered by Namma Yatri’, which acts as the seller-side app in the transaction.
To be sure, the ONDC features on the Paytm app are operated by a separate entity called PAI Platforms.
Sharma had said that 11.8 million users had already shopped on ONDC through Paytm.
Paytm E-commerce Private Limited (now Pai Platforms) has already burnt its hand in e-commerce once before when it ran an app called Paytm Mall.
Paytm Founder Vijay Shekhar Sharma
Fintech major Paytm is entering the ride-hailing sector by offering auto-rickshaw rides in cities like Delhi, Bengaluru and Chennai through the Open Network for Digital Commerce (ONDC), which seeks to challenge the duopoly of Ola-Uber in the market.
The ride-hailing feature on the Paytm app is still in testing mode and visible only to some users. Over the past two years, the fintech major has gradually tested and gone live with ONDC in multiple e-commerce categories like food delivery, grocery, fashion and electronics.
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“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,” said a person close to the developments.
When an auto gets booked on the Paytm app, it says that the feature is ‘Powered by Namma Yatri’, which acts as the seller-side app in the transaction. The Juspay-backed platform also operates several consumer-facing apps of its own for ride-hailing on ONDC.
In the last couple of years, Namma Yatri has enabled 3.73 crore rides in 7 cities, including Bengaluru, Delhi, Kolkata and other metros. However, most of these were auto rides, and the company is also starting cab bookings across cities even as it is closing in on its Series A round of $10-15 million.
Namma Yatri makes money on these trips through a subscription model for drivers and does not charge any per-ride commission. But, sources said that buyer-side apps could charge the seller apps a fee per ride for finding customers.
To be sure, the ONDC features on the Paytm app are operated by a separate entity called PAI Platforms. Although the fintech company does not own any stake in this entity, it is backed by Paytm founder and chief Vijay Shekhar Sharma.
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PaiPai, an ONDC app by PAI Platforms, was mistakenly launched ahead of schedule on Google Play Store earlier this month and now has been removed. The app was developed by the fintech major's parent entity One97 Communications, according to its listing details on the Google Play store that was visible earlier.
At an industry event in the national capital last year, Paytm's Sharma said, "Commerce is a natural extension for us. We are committing to sign up at least 10 million merchants on ONDC before 2025 ends."
Sharma had said that 11.8 million users had already shopped on ONDC through Paytm.
Meanwhile, Pincode, a shopping app on ONDC launched by Paytm rival PhonePe in April last year, has surpassed 1 million downloads on the Google Play Store.
Paytm E-commerce Private Limited (now Pai Platforms) has already burnt its hand in e-commerce once before when it ran an app called Paytm Mall. It had raised $400 million from investors like Alibaba and SoftBank at a valuation of over $2 billion in early 2018. However, that bet went sour as Alibaba sold its entire stake in the company at a valuation of just over Rs 100 crore in 2022.
However, ONDC has created a renewed interest among tech companies in India to take another shot at e-commerce.
Multiple tech unicorns, such as Ola, PhonePe, Meesho and Shiprocket, have taken a bet on the government-backed ONDC that is aimed at breaking the stranglehold of a few players like Amazon, Flipkart, Zomato and Swiggy on online retail in the country.
Meanwhile, the volume of monthly retail purchases on the ONDC has grown six times in the last six months to hit 3.6 million in March, compared to over 600,000 in September last year, according to people close to the developments.
The article has been updated to correct an inaccuracy about the commission structure for mobility in ONDC.
