[Omkar]

What is ONDC?

ONDC or Open Network for Digital Commerce is essentially a government backed platform that will enable local commerce across segments. This includes grocery, food order and delivery, hotel booking, travel, etc.

Why do we need ONDC?

The platform aims to create new opportunities, curb digital monopolies and by supporting micro, small and medium enterprises and small traders and help them get on online platforms. It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.

The proposed government-backed platform aims to create a level playing field for e-commerce behemoths such as Amazon, Flipkart, and offline traders who have been crying foul at the unfair trade practices of these e-tailers.

Why ONDC is affordable?

In this system, ONDC plans to enable sellers and buyers to be digitally visible and transact through an open network, regardless of what platform or application they use. It will also empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, food to mobility.

As ONDC operates an open market without charging any third-party service fees, both vendors and consumers can realise considerable cost savings on their transactions.

How to use ONDC?

Currently, the ONDC service is only available in certain areas, including Bengaluru. The ONDC was launched in its beta format in September last year. Recently, the ONDC gained the attention of netizens when it was noticed that the platform offered grocery and food delivery services.

ONDC does not offer its own app for food ordering. At present, customers can order food through the partner apps - Paytm, PhonePe, Magicpin, and Meesho.

Sources - 1, 2 & 3.

Just search for ONDC in your Paytm app and you will see these options:


Do share your experience been with ONDC.

[Gautham_v6]

I have once tried to use ONDC, but did not purchase further. Because for somone like me who is a hardcore vegetarian, the options are limited. I would like to see more restaurants joining ONDC in upcoming days. But from what i have heard , the total cost is cheaper by Swiggy/ zomato standards, with a differential of ₹100-150.

Plus you have an offer of ₹50 off on your first order via ONDC

[HappyWheels]

I tried to use ONDC via PayTM. Replicated what I had already added to Swiggy, to compare price and noticed that with ONDC delivery charges, it was actually costing more than Swiggy.

Added to this, the lack of any tracking option and customer support, ended up ordering from Swiggy. Am a Swiggy One subscriber, so delivery is free (taken care via the subscription).

[bijims]

I tried ONDC through Paytm in Kerala, and I find the number of shops and restaurants to be limited and prices not as affordable or competitive, our local home delivery apps seem much more affordable, and have much better features.

[Bluengel180]

The issue with ONDC is that restaurants are using the same inflated pricing that they are using on swiggy/Zomato hence the overall pricing is more in several places when you factor in the third party delivery.

Atleast Zomato and swiggy have a centralized support. With ONDC you are dealing with two entities.

[PrasunBannerjee]

Can any forum member help understand on how can developers and small digital agencies from smaller cities utilize ONDC for their customers' benefits. Just trying to understand use cases here. Also by when ONDC would roll out pan-India

[frewper]

The only problem with ONDC is that is assumes everything works smoothly and there is no one responsible for anomalies and blame game can take over.

If I consider the following, while ordering a Pizza and then you dont get the Pizza delivered.

1. You will have to call the Pizza outlet enquiring about the pizza and they say that they have sent it an hour ago.

2. You call the delivery partner and they say they cant track it or the delivery person cannot be reached.

Point is who is responsible for your money here?

The one thing common with all the big box e-commerce companies is that they take responsibility and will make sure your order reaches you. Which means respecting the money I paid. (Yes there can be exceptions. But lets stick to Swiggy/Zomato, Amazon and Myntra or the likes)

ONDC is not taking responsibility for anything.(at least for now). It says it gives a platform for people to interact. But what about the money I paid for an order?

From a Consumer point of view.
The only incentive for people to come on ONDC is that they say prices will be cheaper than on those other platforms. Which other platforms ? Amazon, Flipkart or the other B2C sites.

--> Honestly as a consumer I dont see prices being cheaper. I still think amazon gives me competitive pricing. And one of the most important thing for me. CONVENIENCE.

From a Supplier/Retailer point of view
ONDC claims that local neighbourhood retailer will have a better chance of competing online. Sell things online to reach a larger market.

--> Seriously how? My friendly neighbourhood Kirana store can attract more purchases from me if he gave me competitive pricing. But he has never given me convenience. He never delivered and will never want to. There was a time when I needed that convenience but he never put in the effort. But he has never given me a discount. Another Kirana store will tell me he will deliver, but cannot guarantee even a 3 hr delivery window. My neighbourhood medical store still sells me meds at Retail. So whom are we exactly gonna onboard on ONDC.

If Restaurants are to be considered they will only think of eying ONDC because they can keep the commissions of 30% that Zomato is charging to themselves. There are already reports of pricing being similar on Zomato and ONDC.


Truth is, If any small business want to come online (locally) and sell, there are many ways to do so. Its just a matter of deciding to do so. But then selling online also comes with the baggage of being efficient and time bound. So if one cannot do that, you are not ready to sell online in the first place.

As of today, My household needs, are completely (almost) fulfilled online. I have been to a supermarket less than 5 times in the last one year. Offline Clothes shopping is gone down significantly too. Only expensive or pricey clothes are bought offline.

So if you were to ask me, I still dont know what ONDC as a platform is exactly solving.

All I can tell you is this. On a lazy sunday afternoon as I sit and type this hypothesis with two friends of mine hanging out at my place, four Zomato/Swiggy orders are already delivered to my place and no one once thought we should order from ONDC because it would be cheaper.

Yesterday I ordered a Silver Arrows Cap for myself and ordered it online. I wanted just the Cap. Got it in a day. Fun Fact. A Fancy Mall is right next to my apartment. A separate gate is connected to my society so I dont even have to cross the road. I can literally walk there. Still I ordered online. Why? because I know the shop next door is not cheaper than online prices.

Convenience is key my friend and not cutting commissions of hard working people who deliver food and other items and who put in the effort to create a platform in the first place and you give exceptional service.

[autobahnjpr]

ONDC is a network of networks. It is just a platform to democratize e-commerce and prevent monopolies. Also, provide size and scale to all so that they do not become a limiting factor. It is quite often misunderstood as a replacement for amazon or swiggy. It is much bigger than that. It can be the ONE big system which replaces all e-commerce, including matrimony.

Traditionally, the ONE big platform owns up the entire chain and by that power, they control everything. Amazon, Flipkart, Swiggy - they own and control all aspects of e-commerce. Also, every seller has to be on each platform if he/she has to sell to a wider audience. Delivery is tied to the platform. In ONDC, everything is unbundled.

ONDC does not run any services but only the platform which runs the whole system. There are 3 key entities in the whole chain - the buyer app, seller app, delivery partner. The buyer app is the consumer facing app which takes care of catalog display, cart, payment, refund, customer service, rating, reviews etc. The seller app is the place where actual seller publish their catalog, prices and other information. The seller app also ties up with delivery partner and decides on the delivery details. The buyer app is what we interact with and do not see the other two.

Anyone (from t-bhp community as well) can start their own buyer app on the network, connect to it to get the sellers and start the business. The network provides the scale and size.

Each seller is visible to all the buyers. So, he has to register only once with a buyer app and his catalog and products are available across all the buyer apps. Also, small seller like kirana stores, self-help groups and entities who do not have IT capability for e-commerce will get support from buyer app to make them online. If one seller app does hanky panky or others offer better terms and conditions, they can move to the other. Of course, from the buyer side, nothing changes and his products are visible as before.

Thus, theoretically the ONDC network can be the central marketplace for all kinds of goods and services - amazon, swiggy, makemytrip, magicbricks, bharatmatrimony, bookmy show all rolled into one. In time, specific buyer apps may emerge for a product category (high end fashion, luxury goods) or niche products (custom made, hand made, tribal). It is still early days to predict how things will work out but the whole idea is the ensure that scale and size of a platform does not become a entry barrier to anyone.

Of course, because of unbundling, there is fragmentation of responsibility and ONDC must be aware of this issue and how to address this. Sure, there will be teething troubles.

ONDC is set up by government, but it is not owned or controlled by government. There are 12 big banks and other entities who own and run the ONDC.

[DigitalOne]

Originally Posted by frewper

ONDC is not taking responsibility for anything.(at least for now). It says it gives a platform for people to interact. ..
So if you were to ask me, I still dont know what ONDC as a platform is exactly solving.

Originally Posted by autobahnjpr

ONDC is a network of networks. It is just a platform to democratize e-commerce and prevent monopolies. Also, provide size and scale to all so that they do not become a limiting factor. It is quite often misunderstood as a replacement for amazon or swiggy. It is much bigger than that. It can be the ONE big system which replaces all e-commerce, including matrimony.

I tend to agree with @frewper here. Though the problem that a supplier/shop has to currently register with multiple platforms (e.g. Amazon, Swiggy...) could probably be solved with ONDC, the problem of who is finally responsible or accountable for the entire transaction is not clear as yet. This is a problem in UPI also. But in UPI the number of entities is very less and the technical foundation i.e. IMPS is well established.

Secondly, what is the incentive for a buyer app provider (e.g. Paytm)? How do they make money? Providing IT infra is a cost for them. If they start charging a fee from the supplier or the customer, then again we are back to the old pricing problem.

Which brings me an important point. Today's eCommerce platform do not rely solely on cheaper prices. Their algorithms and User interfaces are designed to make you buy more stuff than what you had initially planned. Providing sophisticated search, personlized recommendations etc takes considerable money and IT resources. Amazon was not built in a day . Who is going to do this? Will the Buyer app provider do it?

In my opinion, ONDC has been setup with a good intention that there should not be monopolies but lot of questions and issues remain. Tatas with all their financial and IT muscle are struggling to integrate all their individual apps into a single super app (Tata Neu), so I am fairly skeptical about an government backed open architecture model to succeed.

(For South Bengaluru, where I stay, the first few shops that it shows are Simpli Namdharis super markets 4-5 kms from my house - not exactly the small kirana stores, but these are early days so that's okay.)

[autobahnjpr]

Originally Posted by autobahnjpr

ONDC is a network of networks. It is just a platform to democratize e-commerce and prevent monopolies. Also, provide size and scale to all so that they do not become a limiting factor. It is quite often misunderstood as a replacement for amazon or swiggy. It is much bigger than that. It can be the ONE big system which replaces all e-commerce, including matrimony.

To continue the discussion - we are heavily focused on B2C interactions but ONDC has a more powerful and potent impact on the B2B commerce. MSME, small players can go online without significant investment and can reach thousands of potential buyers without investing in sales and marketing. Some of them may even diversify in B2C segment.

So, the idea that ONDC is a amazon or swiggy replacement and has to be judged/evaluated on same parameters of customer service is quite a misnomer. Glitches in one or two orders is not going to be deciding factor for how ONDC shapes up in the future. It is an enabling platform for all flavors of e-commerce unbundling the chain to ensure fair play. It is an attempt and things will take time. Amazon was not built in a day.