Transactions On ONDC Up 3X Since December Last Year: CEO

SUMMARY

The number of transactions on ONDC have risen nearly 3X since December last year, its MD and CEO Thampy Koshy said, adding that the number is expected to grow 7X-8X by December 2025

ONDC, in its white paper released today, said that the open network model with zero commission for the mobility sector can increase drivers’ monthly gross earnings by 30% to INR 48,000-49,000 from INR 37,500 currently

The CEO said that nearly 40 buyer-side applications are seeing increasing traction on the open network, of which over 20 apps are processing over 1,000 transactions daily

The number of transactions on ONDC have risen nearly 3X since December last year, its MD and CEO Thampy Koshy said, adding that the number is expected to grow 7X-8X by December 2025.

Speaking on the sidelines of the launch of ONDC’s white paper, “Driving Digital Inclusion: Open Networks and Zero-Commission Mobility Apps”, the CEO said that nearly 40 buyer-side applications are seeing increasing traction on the open network.

Of these, over 20 apps are processing over 1,000 transactions daily while around 12 are handling more than 30,000 transactions every day, Koshi said. 

It is pertinent to mention that ONDC witnessed 14 Mn transactions in October. Nearly 5.5 Mn transactions from these came from the mobility segment and 8.4 Mn came from non-mobility segments.

ONDC, in its white paper released today, said that the open network model with zero commission for the mobility sector can increase drivers’ monthly gross earnings by 30% to INR 48,000-49,000 from INR 37,500 currently. This translates to an annual increment of 1.36 Lakh per driver.

The paper highlighted that the commissions charged by Ola and Uber, which have aggregator-driven models, impacts driver incomes and reduces their capacity to contribute to local economies.

It is pertinent to note that Namma Yatri has also partnered with ONDC. The open network offers a subscription model of INR 90 per day for auto and bike drivers for unlimited rides. 

Besides, the likes of Uber, Ola and Rapido have also entered into partnerships with ONDC to offer various services.

While Rapido offers Chennai Metro Rail (CMRL) tickets directly through the ONDC platform, Ola offers last-mile logistics services for delivery of food, grocery, and pharmaceuticals through. 

Ola Electric is also selling its two-wheeler bikes like Ola S1 X series, Ola S1 Pro and Ola S1 Air on the ONDC platform. 

With the rise in transactions, ONDC has also been making changes to its commission structure. Earlier this month, it trimmed the incentive for network participants to INR 40 Lakh for December from INR 60 Lakh offered during the festive season in October.

It is also set to levy a transaction fee of INR 1.5 for every transaction above INR 250 from January 1.

Source: Inc42 Media