Digital payments app Paytm is looking to expand its services towards ride-hailing by offering auto-rickshaw rides to its users. According to a report by Moneycontrol, the feature is still in testing mode and visible only to select users across several metros like Delhi, Bengaluru and Chennai.
The ride-booking feature is available on the fintech major's app through the Open Network for Digital Commerce (ONDC). If successful, the new service will pose a challenge to the two giants in the ride-hailing sector, Ola and Uber, which currently dominate the market.
"There is a lot of software testing and integration that goes into each rollout. There is no reason why Paytm will not also get into cab bookings like Ola and Uber as well at a later stage,” a person close to the developments told Moneycontrol.
The auto-booking feature on Paytm is powered by Namma Yatri, another ride-hailing services provider built by Juspay Technologies.
In the past couple of years, Paytm has already forayed into several e-commerce services like food delivery, grocery, fashion and electronics, all via ONDC. Similarly, its ride-booking feature is also available under the shopping section on the app.
It is noteworthy that ONDC platform on Paytm is operated by a separate entity called PAI Platforms, earlier known as Paytm E-commerce. Though Paytm does not own any stake in the entity, it is backed by Paytm founder and chief Vijay Shekhar Sharma.
This is not the first time that the fintech major is trying to expand its services out of the digital payments sector. In 2018, it made an attempt to step foot in the e-commerce sector, bringing huge investments from the likes of Alibaba and Softbank. However, in 2022, Alibaba sold its entire stake in the company at a valuation of just over Rs 100 crore.
Now, the government-backed ONDC platform is providing some ease to tech companies to take another crack into the e-commerce sector.
Published 10 May 2024, 07:34 IST