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Zero commission model in mobility can increase driver incomes by 30%: ONDC

YourStory · 6d

The Government-backed Open Network for Digital Commerce (ONDC) has released a whitepaper discussing the benefits of its zero commission model for the mobility sector. The report highlights the challenges faced by ride-hailing drivers who pay a percentage of their earnings as commissions to platforms. In contrast, the ONDC's zero commission model, which charges a flat platform fee or a monthly subscription fee starting from as low as Rs 10 per day, allows drivers to retain 100% of their earnings. This could lead to a 30% increase in driver incomes, amounting to Rs 1.36 lakh annually, benefiting approximately 15 lakh drivers across India. The ONDC aims to promote digital inclusion and growth through its open network approach, which prioritizes interoperability and unbundling of services. This model has the potential to generate significant economic impact and tax revenue for the government. The whitepaper also argues for a differentiated approach to applying GST to support the growth of open network zero-commission ride-hailing services.