Fintech
Paytm launches ride-hailing services? Everything you need to know about the new offer from the fintech major
Digital payments app Payment is looking to expand its services towards ride-hailing by offering rickshaw rides to its users. According to a report by Moneycontrol, the feature is still in testing mode and is visible only to select users in several metros like Delhi, Bangalore, and Chennai.
The ride booking function 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 ride-hailing giants, Ola and Uber, which currently dominate the market.
“There is a lot of software testing and integration in every implementation. There is no reason why Paytm won’t also enter cab bookings like Ola and Uber at a later stage,” a person close to the developments told Moneycontrol.
The automatic booking feature on Paytm is provided by Namma Yatri, another ride-hailing service provider created by Juspay Technologies.
Over the last couple of years, Paytm has already forayed into several e-commerce services such as food delivery, grocery, fashion and electronics, all through ONDC. Likewise, its ride booking feature is also available in the shopping section of the app.
Interestingly, the ONDC platform on Paytm is operated by a separate entity called PAI Platforms, previously known as Paytm E-commerce. While Paytm does not own any stake in the entity, it is backed by Paytm founder and chief Vijay Shekhar Sharma.
This isn’t the first time the fintech company has looked to expand its services outside of the digital payments industry. In 2018, it attempted to get a foothold in the e-commerce sector, bringing in 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 giving tech companies some ease to take another step into the e-commerce sector.
Published May 10, 2024, 07:34 IST