Zomato and Swiggy face competition as Government launches New Food Delivery, ONDC in Indian Market

About the New Player in town:

The Ministry of Commerce’s Department of Promotion of Industry and Internal Trade (DPIIT) has developed an e-commerce protocol known as ONDC, which is open to the public. The ONDC platform facilitates direct interaction between buyers and sellers, eliminating the need for intermediary applications. By utilizing ONDC, sellers can reach potential customers from all over the country who are using any of the partner applications.

Unique Selling Proposition:

ONDC offers buyers the opportunity to discover and purchase a diverse selection of products from both established brands and local businesses. Buyers can browse and select products from a wide range of categories, including food and beverages, personal care and beauty, home decor, electronics, and fashion.

Buyers can access buyer applications like Paytm, Mystore, Craftsvilla, Spice Money, Meesho, Magicpin, and Pincode to use ONDC for shopping. Once the buyer application is opened, the customer can search for the product they want to purchase. Additionally, the application provides information about local stores and retailers located near the customer’s current location. The buyer can select a store, view the prices of the product, and then proceed to place an order.

What is the Significant usage of the product?

ONDC provides a platform for local businesses and sellers to compete with e-commerce giants like Amazon and Flipkart. By using ONDC, these businesses become discoverable online to customers, which significantly increases their reach. Unlike traditional e-commerce platforms, ONDC allows buyers and sellers to carry out transactions without being on the same application. Additionally, sellers are not bound by the specific policies of a particular e-commerce platform, as they can use any ONDC-compatible application to conduct their business.

Commerce and Industry Minister Piyush Goyal has stated that the ONDC (Open Network for Digital Commerce) will enable small retailers to withstand the competition posed by tech-driven e-commerce giants. The minister emphasized that the ONDC will democratize the advantages of e-commerce, similar to the way UPI (Unified Payments Interface) democratized payment systems.

The objective of ONDC is to promote inclusivity and accessibility in the e-commerce sector for customers. They can buy products from their preferred local businesses or any other retailer. Moreover, the network intends to streamline various aspects of operations such as cataloguing, order management, inventory management, and order fulfillment. This standardization will benefit both customers and businesses.