What is ONDC and how does it work?
ONDC stands for Open Network for Digital Commerce. It is an e-commerce platform that includes various small and large-scale e-commerce players and is designed to challenge the market dominance of large players such as Amazon and Flipkart in India. It offers services such as “Sell on ONDC/Create a Seller Experience”, “Create a Buyer Experience”, “Provide Software as Service”, “Provide Other Services” and “Buy on ONDC”. Customers can order food through partner apps like Paytm, Magicpin, and others, and the platform also delivers groceries, home décor, cleaning essentials, etc. ONDC aims to increase e-commerce penetration in the country by enabling population-scale inclusion of all types and sizes of sellers. While Swiggy and Zomato charge a 25-30 per cent commission from restaurants on every order, ONDC charges only 2-4 per cent per order, which makes orders through ONDC a better proposition for restaurants and ultimately cheaper for consumers. The platform has gained popularity with transactions clocking at 10,000 orders a day, and as ONDC onboards more and more customers, it has the potential to disrupt not just food delivery but also all kinds of e-commerce in India.
According to a press statement issued by ONDC, its main aim is to dramatically increase e-commerce penetration in the country by enabling population-scale inclusion of all types and sizes of sellers. The platform has already gained popularity with transactions clocking in at 10,000 orders a day. ONDC believes that, as it onboards more and more customers, it has the potential to disrupt not just food delivery but also all kinds of e-commerce in India.
How does ONDC help restaurants and consumers?
ONDC is a direct link between businesses and consumers, which means restaurants can avoid high commissions previously charged to them by intermediaries. Restaurants such as Chowman, who own 29 outlets across Kolkata, Bengaluru, and Delhi NCR, are all set to onboard the platform. ONDC provides a quicker response to any food complaints and delivery issues as the direct link manifests a quicker response, which was otherwise going through a big loop of intermediary chains. ONDC will benefit restaurants who are running a self-owned fleet as they will be able to make good use of their fleet to serve customers over the ONDC platform.
How can customers place an order on ONDC, and what makes food cheaper on ONDC compared to other platforms?
Customers can place an order on ONDC by going on the ONDC website and clicking on the “Shop on ONDC” tab. A number of partner apps such as Paytm, Mystore, and Magicpin will appear on the screen, and customers can select from the categories of food and groceries online. Customers can put in their address, place their order, and pay online. They can also use the Paytm app on their phone, click on search, and search for ONDC. Numerous stores and restaurants that customers can order from will appear on the app. Customers can click on the food they want to order, add their address, place their order, and pay online. Customers can track their order to see the status of the delivery.
What is the reason behind food being cheaper on ONDC compared to Swiggy and Zomato?
While Swiggy and Zomato charge a 25-30% commission from restaurants on every order, ONDC charges only 2-4% per order. So, the lower commission makes orders through ONDC a better proposition for restaurants and ultimately cheaper for consumers. ONDC also offers a flat discount of Rs 50 while ordering. However, according to ONDC chief T Koshy, the platform “will provide limited support for a period of time to the network participants to give a jumpstart to the network.” This means the discounting will be a short-term strategy to get users on board and get them hooked to the system.
Here are some frequently asked questions about ONDC:
What is ONDC?
ONDC stands for Open Network for Digital Commerce. It is a platform that connects small and large-scale e-commerce players and offers a variety of services such as “Sell on ONDC/Create a Seller Experience”, “Create a Buyer Experience”, “Provide Software as Service”, “Provide Other Services” and “Buy on ONDC”. It aims to increase e-commerce penetration in India by enabling population-scale inclusion of all types and sizes of sellers.
What services does ONDC offer?
ONDC offers a number of services such as “Sell on ONDC/Create a Seller Experience”, “Create a Buyer Experience”, “Provide Software as Service”, “Provide Other Services” and “Buy on ONDC”. The platform also delivers groceries, home décor, cleaning essentials, etc.
How does ONDC compare to other food delivery platforms like Swiggy and Zomato?
While Swiggy and Zomato charge a 25-30 per cent commission from restaurants on every order, ONDC charges only 2-4 per cent per order. So, the lower commission makes orders through ONDC a better proposition for restaurants and ultimately cheaper for consumers. Additionally, ONDC offers a flat discount of Rs 50 while ordering. However, industry experts say it may be too early to rejoice.
Can I order food through ONDC?
Though it does not have its own app for food ordering, customers can order food through partner apps like Paytm, Magicpin and others.
Where is ONDC available?
ONDC is currently available in around 180 cities in India.
How popular is ONDC?
According to a press statement issued by ONDC, the platform has already gained popularity with transactions clocking at 10,000 orders daily.
Will ONDC disrupt the food delivery market in India?
According to Nandan Nilekani, Infosys co-founder and now a member of ONDC advisory counsel, as ONDC onboards more and more customers, it has the potential to disrupt not just food delivery but also all kinds of e-commerce in India. However, it is too early to say for sure.
