The Landscape:

The Indian ride-hailing market has long been dominated by giants like Ola and Uber. These companies operate on a commission-based model, taking a cut of each fare. This can lead to higher prices for consumers and lower profits for drivers.

Enter Namma Yatri with ONDC:

Namma Yatri, a ride-hailing app built on the ONDC network, presents a new business model. ONDC stands for Open Network for Digital Commerce, an initiative promoting open networks in various sectors, including transportation.

Namma Yatri’s Competitive Advantage:

• Zero Commission: Namma Yatri eliminates the commission charged by traditional ride-hailing platforms. This could lead to:

  1. Lower Prices: Passengers benefit from potentially lower fares.
  2. Increased Driver Earnings: Drivers keep a larger share of the fare, potentially attracting more drivers to the platform.

• Bidding System: Riders submit bids for rides, and drivers choose the most suitable offer. This could result in:

  1. Flexibility for Riders: Passengers can potentially secure rides at lower prices.
  2. Driver Control: Drivers have more control over their earnings.

Growth and Impact:

Namma Yatri has successfully launched in Bangalore, Mysore, Chennai, Kochi, and Delhi. Their growth indicates a potential threat to the established players’ market share.

Key Questions for Businesses:

1. Will ONDC-based models like Namma Yatri disrupt the current market dynamics?
2. How will established players respond to zero-commission competition?
3. Can ONDC foster a more competitive and consumer-friendly ride-hailing ecosystem?

The Future of Ride-Hailing: 

The emergence of ONDC and platform like Namma Yatri presents an interesting case study in revolution of rid-hailing industry. It remains to be seen how established players adapt and how ONDC will impact the overall market landscape.