Paytm's ONDC Expansion: Enters Auto-Rickshaw Rides, Competing with Ola and Uber

Paytm plans to introduce auto-rickshaw services in major cities like Delhi, Bengaluru, and Chennai through the Open Network for Digital Commerce (ONDC), aiming to challenge the market dominance of Ola and Uber.

The move aligns with Paytm's strategy to expand its presence on ONDC, having already ventured into various e-commerce sectors such as food delivery, grocery, fashion, and electronics.

Testing Phase and Limited Availability

The new ride-hailing feature is currently in testing on the Paytm app and is accessible to a limited number of users. Extensive software testing and integration are underway before each rollout, indicating Paytm's meticulous approach to ensuring a seamless user experience.

Potential Expansion to Cab Bookings

Paytm may extend its services to include cab bookings similar to Ola and Uber in the future, according to an insider familiar with the project. This potential expansion suggests Paytm's ambition to become a comprehensive transportation solution provider within the ONDC ecosystem.

Partnership with Namma Yatri

When users book auto-rickshaw rides through Paytm, the app displays a message indicating that the feature is "Powered by Namma Yatri," the seller-side platform for these transactions.

Namma Yatri, backed by Juspay, manages several consumer-facing ride-hailing apps on ONDC, showcasing collaboration within the digital commerce ecosystem.

Executive Resignation

Paytm's Chief Operating Officer (COO) and President, Bhavesh Gupta, has submitted his resignation, citing personal reasons.

Gupta's resignation is effective from May 31st, but he intends to continue supporting the company in an advisory capacity within the office of the Chief Executive.

Company's Response

Paytm has accepted Gupta's resignation and expressed gratitude for his contributions to the company. The company remains confident in its future trajectory, highlighting the strong leadership established in the payments and financial services sectors over recent years.

Conclusion:

Paytm's foray into the ride-hailing sector through auto-rickshaw services represents a strategic move to diversify its offerings within the ONDC ecosystem.

While facing challenges from established players like Ola and Uber, Paytm's meticulous testing and potential expansion into cab bookings indicate its ambition to carve a significant presence in the transportation market.

Additionally, despite the resignation of its COO and President, Paytm remains optimistic about its future growth trajectory, leveraging its established leadership in the digital payments and financial services sectors.