Government will Run State-Run Cabs - Should Ola/Uber Worry?

In a move that might overturn influential ride-sharing giants, Uber Technologies Inc. and its indigenous rival, Ola, India's government-backed open commerce network have started offering ride-hailing at zero commission.

Namma Yatri, which provides three-wheeled auto rickshaw rides without charging commission to either the drivers or the passengers, is now listed on Bangalore's Open Network for Digital Commerce, or ONDC.

The launch of the new service comes at a time when consumers and drivers are highly dissatisfied with the two major cab-hailing platforms' shortage of car availability, poor service, and excessive commissions.

For the auto-rickshaw rickshaw rides, there are presently 45,000 drivers on the app.

The government's commerce ministry supported the nonprofit ONDC when it was founded in 2021 with the aim of democratizing commerce. The mobility software is open source, allowing several apps, including digital payment services like Paytm and PhonePe, to integrate rides.

In order to compete with Amazon.com Inc. and Walmart Inc.-owned Flipkart, ONDC has offered grocery and restaurant delivery in numerous cities during its initial phase of growth. Newer than Swiggy and Zomato Ltd., which are both supported by Softbank Group Corp., are its food delivery partners.

The platform has more than 25,000 grocery and food delivery providers, according to Koshy. He stated, "We are enabling thousands of restaurant deliveries daily and will soon begin adding financial services providers."

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