A pizza is available for just Rs 400 on Swiggy and Rs 300 on Zomato. For a biryani, which usually costs Rs 450 is now available for Rs 320. No, we are not selling a pipe dream because ONDC is making this dream into a reality.
In fact, people are saving their money this way. So, what is this ONDC? How does it work? How is it changing the market dynamics? Read on.
The Open Network for Digital Commerce (ONDC) is an open source network developed by the government. On this, local and small businesses get a network enabled application. ONDC aims to promote an open platform for e-commerce retailers. This will help small businessmen to increase their business and reduce the dominance of big companies in this sector.
Let us understand the benefits of ONDC in simple words. With this, small businessmen and shopkeepers will be able to increase their reach in all businesses including grocery, food order and delivery, hotel booking and travel. This means they will be able to reach more customers.
ONDC was first launched in Bengaluru in September 2022. At present this platform is available in many cities and people are using it to get the best deals.
To understand this, we made a comparison between online food delivery apps and ONDC.. Take the example of food items, this platform allows the restaurant owner to sell food items directly to the customer. Unlike third party apps like Swiggy, Zomato where food is sold at a higher price. At present, 10,000 orders are being placed every day through ONDC.
So then, how to use ONDC?
ONDC can be used through the Paytm app. First type ONDC in the search bar on Paytm app. After this, options like grocery, food, home & decor will drop down. Now if you want to order food then go to ONDC food and choose your order from there. Similarly you can order other products as well.
Now coming to the delivery part. This platform basically works at two ends, at one end is the seller and at the other end is the buyer. Companies like Gofrugal and Digiit host the seller side, on the other hand Paytm hosts the buyer side interface. While ONDC acts as the interface. Suppose you place an order for a burger.The backend of this transaction will be supported by hyperlocal startup Magicpin. This app is part of both buyer and seller network on ONDC.. Now the delivery of orders will be done by Dunzo. Delivery App Dunzo will do this work in partnership with Magicpin.
Can ONDC create a revolution?
ONDC is being called UPI of online delivery.. Union Minister of Commerce and Industry Piyush Goyal has recently invited all big and small retailers to join ONDC. He says that this will help in creating huge opportunities.
Along with the invitation, Goyal had said, “Walmart and Flipkart, Tata and Reliance will have a role to play in making ONDC successful. In the years to come, ONDC will prove to be a game changing e-commerce platform not only in India but across the globe.”
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