New business models on open networks can transform India’s mobility sector, and boost drivers’ incomes by up to 30% to add ₹1.36 lakh per driver annually, which adds to around ₹20,475 crore for 15 lakh drivers, according to a latest new whitepaper by Open Network for Digital Commerce (ONDC).

The mobility sector via ONDC has the potential to create an economic impact of ₹51,000 to ₹67,000 crore annually through increased local consumption while generating greater tax revenue for the government, the paper states.

The ONDC whitepaper, “Driving Digital Inclusion — Open Network and New Business Models in Mobility Apps,” offers insights into how open networks and new business models can redefine India’s urban mobility landscape, while driving economic growth, boosting driver incomes, and fostering inclusive development.

It highlights the challenges with traditional aggregator-driven models, where platform commissions impact driver incomes and reduce their capacity to contribute to local economies. "The open network model such as zero commission in the mobility sector approach offers a compelling alternative, empowering drivers to retain 100% of their earnings," says the paper.

It adds that such a shift could increase driver incomes by ₹1.36 lakh annually, it says, adding that it's 30% higher than current levels.

The ripple effects of this additional income are substantial. "Drivers’ households are expected to spend more on better housing, education, healthcare, and nutritious food. This increased spending could stimulate local businesses and generate between ₹51,000 crore to ₹67,000 crore annually in additional economic activity, driving inclusive growth and strengthening local economies."

The paper also underscores the importance of evolving policy frameworks with new models emerging with open networks, such as issuing clarifications for GST that can potentially enhance net tax revenues for the government, with estimates ranging from ₹54.5 crore to ₹1,152 crore annually, while promoting broad-based economic growth, fairness, and inclusivity across the ecosystem.

It underscores how digitisation can play a crucial role in this transition, offering transparency, accountability, and additional benefits for both drivers and passengers. It also underscores how open networks can help reduce compliance burdens, encourage digital adoption, and ensure a fair and inclusive approach that benefits all stakeholders.

ONDC says the insights in this whitepaper provide a "meaningful framework" to support the evolution of urban mobility in India while contributing to a more sustainable and equitable ecosystem.

Notably, ONDC is a network of 200+ apps, including buyer apps and seller apps. Shoppers can choose from one of the buyer apps to buy their desired products based on the categories of products those apps have enabled. Sellers can choose from one of the seller apps listed on the network. Any buyer on any buyer app can buy from any seller on any seller app.