Because of its fundamental tenets of unbundling and interoperability, ONDC is a good choice for developing a new ecosystem that can handle the shortcomings of the current market.
The Indian online mobility market, which has been dominated by Uber and Ola, is about to face a significant shake-up as the government-backed Open Network for Democratic Commerce (ONDC) enters the market. ONDC aims to create a level playing field for all stakeholders in the mobility industry and potentially break the current duopoly. Last year, ONDC tested the idea with the Kochi Open Mobility Network (KOMN), which has 2,200 drivers collectively doing over 200 trips daily. ONDC’s principles of unbundling and interoperability will separate the demand and supply sides of the business and distribute demand generation across multiple consumer apps on the network. This approach aims to rationalize the commission structure and improve the user experience while increasing customer convenience and expanding the customer pool for drivers. The first buyer app on the network is Paytm, and several other large consumer-facing apps are expected to join soon. ONDC’s expansion plans include integrating different modes of transportation to enable multi-modal transportation. It remains to be seen how effective ONDC will be in challenging the current duopoly, but there is potential for a more efficient, equitable, and user-friendly mobility services ecosystem.
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