A relatively obscure culinary delivery alternative in India, the Open Network for Digital Commerce (ONDC), has surfaced with its cost-effective food transportation facilities. Nevertheless, ONDC extends beyond the confines of a mere food conveyance platform, as it constitutes a structured framework for electronic commercial transactions that caters to businesses of all types and dimensions, particularly those situated in small municipalities and countryside regions, amplifying their electronic commerce outreach.
ONDC (Open Network for Digital Commerce) materialized in December 2021, as a not-for-profit organization with Protean eGov Technologies Limited and the Quality Council of India as its pioneer members. It has gained the support of public and private sector stakeholders, with investments from the Bank of Baroda, Central Depository Services (India) Limited, HDFC Bank Limited, and the National Bank for Agriculture and Rural Development (Nabard), among others.
Partnerships and Availability
ONDC has presently established strategic partnerships with several renowned platforms, such as Meesho, Mystore, Paytm, Craftsvilla, Magicpin, and Spice Money, among others. These platforms enable users to order products directly from the businesses listed on the ONDC platform, thereby eliminating intermediaries and facilitating cost-effective deliveries. ONDC also ensures that businesses gain the maximum advantage from their sales.
Accessing the ONDC platform is feasible by simply searching for it on the Paytm app. Commencing its pilot phase in Delhi, Bengaluru, Coimbatore, Bhopal, and Shillong on April 29, 2022, the network has progressively expanded its services to Noida, Faridabad, Lucknow, Bijnor, Bhopal, Chhindwara, Kolkata, Pune, Chennai, Kannur, Thrissur, Udipi, Kanchipura, Pollachi, Mannar, and Ramnathpuram. The CEO of ONDC, T Koshy, affirmed that the network will continue to incorporate additional locations and cities to its network.
Benefits and Challenges
ONDC aspires to bestow the advantages of digitization to a multitude of merchants and distributors in India, specifically those situated in small towns and rural regions. By furnishing a platform for businesses to amplify their e-commerce reach, ONDC facilitates the enhancement of their sales and exploits the potency of the internet.
Despite ONDC’s provision of cost-effective deliveries, it is faced with hurdles in terms of the delivery personnel. Dissimilar to platforms such as Zomato and Swiggy, which boast dedicated teams of delivery personnel, businesses operating on ONDC must dispatch their own delivery personnel. In the event that a business receives numerous orders in a condensed duration, it may prove to be a daunting task for the restaurant to keep up with the incoming orders.
Furthermore, with ONDC being a relatively recent platform, the number of restaurants that are accessible on it is currently meager compared to Zomato and Swiggy. Nevertheless, with the passage of time, it is probable that the platform will gain more popularity and eventually garner more listings.
Conclusion
ONDC’s purpose is to facilitate an ecosystem for e-commerce, particularly for businesses in small towns and rural areas in India. The network provides an economical delivery option for businesses and aims to increase their e-commerce penetration by leveraging the power of the Internet. While ONDC faces challenges in terms of delivery personnel and listings, it has the potential to become a significant player in India’s e-commerce landscape.
