New Delhi, Dec 16 (NationPress) Open Networks have the capability to produce an annual economic contribution of up to Rs 67,000 crore in India’s mobility sector, promoting inclusive development and enhancing local economies, as stated in a whitepaper launched by the government-supported Open Network for Digital Commerce (ONDC) on Monday.

The whitepaper delves into how innovative business models based on open networks can revolutionize India’s mobility sector. It provides insights on how open networks and novel business models can reshape India’s urban mobility scene, while simultaneously driving economic expansion, increasing driver earnings, and encouraging inclusive development.

Furthermore, it points out the drawbacks of traditional aggregator-driven models, where platform commissions adversely affect driver incomes and diminish their ability to contribute to local economies.

The open network model, such as the Zero Commission Mobility approach, presents a persuasive alternative, allowing drivers to retain 100 percent of their earnings.

This innovative model could boost driver earnings by Rs 1.36 lakh annually—approximately 30 percent higher than current levels. This could potentially contribute up to Rs 20,475 crores annually for 15 lakh drivers across India.

“The ripple effects of this additional income are considerable. Households of drivers are anticipated to spend more on improved housing, education, healthcare, and nutritious food,” ONDC noted.

“This increased expenditure could invigorate local businesses and generate between Rs 51,000 crores to Rs 67,000 crores annually in supplementary economic activity, promoting inclusive growth and reinforcing local economies,” it added.

The paper also emphasizes the necessity of evolving policy frameworks as new models arise with open networks.

This encompasses “providing clarifications for GST that could potentially enhance net tax revenues for the government, with projections ranging from Rs 54.5 crore to Rs 1,152 crore annually, while fostering broad-based economic growth, equity, and inclusiveness throughout the ecosystem,” as stated by ONDC.

The whitepaper further illustrates how digitization can be pivotal in this transition, offering transparency, accountability, and additional advantages for both drivers and passengers. It highlights how open networks can alleviate compliance burdens, promote digital adoption, and ensure a fair and inclusive approach that benefits all stakeholders. ONDC comprises a network of over 200 apps, including buyer and seller applications.