Kolkata’s Cab-Hailing Surge
Open Network for Digital Commerce (ONDC), India’s digital commerce platform, is gaining ground in Kolkata. Its cab-hailing pilot, in collaboration with the West Bengal government’s Yatri Sathi app, is poised to disrupt the ride-sharing market.
Rapid Uptake in Kolkata
In September, the pilot program in Kolkata reached an impressive milestone, with an average of over 5,000 rides daily. This surge hints at a potential full-scale launch in the near future.
Impressive Milestones Achieved
Since its inception in July, the mobility pilot in Kolkata has achieved remarkable results. It has completed 250,000 trips, onboarded 365,000 registered users, enlisted 18,600 driver partners, and generated approximately INR 7 crore in driver earnings.
Expanding Footprint Across India
ONDC is not stopping at Kolkata. It has already initiated ride-hailing services in southern cities such as Bengaluru, Mysuru, and Kochi. Now, it is eyeing expansion into cities across other regions of India.
Bengaluru: A Major Hub
ONDC’s mobility segment in Bengaluru is making waves, boasting nearly 100,000 rides daily through the Namma Yatri app. This impressive performance challenges the established dominance of Ola and Uber in the region.
One Year of Success
After a year of operations, the app has facilitated over 10 million trips, resulting in more than INR 150 crore in driver earnings. It has attracted nearly 2 million registered users and enlisted 95,000 driver partners.
Government’s Vision for E-Commerce
The Indian government has ambitious plans for ONDC, aiming to raise e-commerce penetration to 25% in the country. The goal is to connect 900 million buyers with 1.2 million sellers through the platform, generating a projected gross merchandise value of $48 billion.
ONDC’s Evolving Incentive Structure
ONDC recently revamped its incentive scheme, providing greater flexibility to buyer-side apps in offering discounts to consumers. It also reduced average subsidies in the food category by half and aims to increase the density of merchants in 45 non-metro districts.
Scaling Transactions and Financial Products
ONDC is gearing up to handle 200,000 transactions daily by the end of the year. Simultaneously, the government is working on introducing financial products to the ONDC platform in the coming months.
Empowering Merchants
ONDC has successfully onboarded 54,500 merchants offering approximately 7.5 million stock-keeping units (SKUs). These merchants are now processing around 20,000 daily orders, with a peak of 35,000 orders.
Education and Outreach
To promote ONDC in tier 2 and 3 cities and beyond, the platform has launched an online educational course for merchants, available in 14 to 18 languages. Additionally, state broadcaster Doordarshan will soon launch regular programming to educate buyers and sellers about ONDC nationwide.
