The ONDC Revolution: Slaying Swiggy and Zomato in a Flash!"
Collaboration vs Competition
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What is ONDC?
Open Network for Digital Commerce (ONDC) is a private non
for profit company established by the department of Internal
Trade. It is indeed a bold initiative to build an inclusive digital
commerce ecosystem.
ONDC is an
interoperable network
based on the BeckN
protocol that anyone
can access.
It seeks to break
down silos in digital
commerce by
enabling platforms of
varying configurations
(big or small) to
connect and operate
seamlessly on it.
Credits - ONDC.org
01
How does ONDC work?
ONDC is based on an open network approach where
emphasis is given to the network rather than the
platform of usage.
Traditional E-Commerce
system
Proposed Open
network concept
Credits - ONDC.org
02
Need for adopting ONDC?
There are several factors impending the need for adoption,
few of them are:
1. Only 7% of Indian
retail market is
contributed by digital
E-Commerce. This
low number is really
unfortunate despite
the rapid growth in
digital economy.
2. India’s digital economy
has grown ~2.5 times
faster than the overall
Indian economy since
2016.
Credits - ONDC.org
03
Similar DPIs
There have been similar Digital Public Infrastructure (DPI)
initiatives that have seen a rapid adoption.
Credits - ONDC.org
04
Impact of ONDC
Many Investors and Entrepreneurs are very bullish with
this concept. There is an active push from the government
to make this a success as this would indeed be a
revolutionary step in the E- Commerce sector.
Credits - ONDC.org
05
Impact of ONDC
On integrating different DPIs together, ONDC could scale
up credit access and unlock a plethora of opportunities for
many MSMEs. A Projected Target market is shown below:
Credits - ONDC.org
06
Bottlenecks in adopting ONDC
1. High Delivery Cost Incurred Since ONDC ropes in third party
logistics for delivery, the delivery
charges are quite a high fare.
Existing players offer low to
almost no delivery fee through
their loyalty programs.
2. Credibility of the suppliers There is no central authority to
hold accountable, this may
raise questions on the quality
and the accountability of the
seller.
3.Price sensitive Customers - Since India’s population is highly
price sensitive, it is going to be a very prominent factor for retaining
customers.
Credits - ONDC.org
07
Collaboration over Competition
There are a lot of benefits for both the stakeholders (ONDC and
Individual E-Commerce Giants) if they work together. Not only an entire
spectrum of vendors could be given an opportunity, but ONDC could
also connect remote parts of India which would have taken millions of
investment to provide service by the current players.
&
Credits - ONDC.org
With synchronised
collaboration from different
stakeholders, ONDC could
integrate all the necessities
in one portal and could
make it a complete one
stop solution.
08
Additional Reading
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https://iitk-my.sharepoint.com/:w:/g/personal/nishanths21_iitk_ac_in/
EUdLkHkW8HNAgQaKdeEhhJ4B1TEpT6_cEtZPu74aDWjK5w?e=jZsYFW
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Credits - ONDC.org
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