The difference in prices between ONDC and other food delivery platforms like Zomato and Swiggy is set to reduce as the ONDC has said that the incentives for subsidising delivery costs for buyers will now be capped, according to an ET report, citing a recent communication to seller-side applications on the ONDC.
Currently, ONDC offers an incentive of up to Rs 75 as a discount to be provided for logistics for buyers on every eligible order.
According to the ET report, the ONDC has not added two new additional conditions. The incentive will be provided only up to a maximum incentive of Rs 2,25,000 per seller-side app per day, and a maximum incentive of Rs 3,750 per seller per day.
Initially, the customer was also not being charged for delivery for most hyperlocal orders. But now, as per the report, this clause also stands deleted as of May 9.
An ONDC spokesperson said, “At this stage for ONDC, the time was right to broaden the activity and drive awareness and transactions to build confidence and acceptance that an unbundled interoperable way of delivering e-commerce can work well. A stimulus such as this was designed for limited time and scale and is constantly reviewed. The latest adjustments are consistent with those principles.”
The spokesperson added that the stimulus was first conceived when the network was clocking less than 100 orders a day and has undergone adjustments because of the response received. The number of orders is averaging consistently over 10,000 now and prove that interoperable unbundled e-commerce is not just viable but also can continue momentum beyond the stimulus.
Recently, internet users said they ordered burgers from both Swiggy/ Zomato and ONDC. They had a difference of about 60 per cent in prices. Swiggy/ Zomato offered a burger at about Rs 282, while ONDC offered the same burger at nearly Rs 109.
ONDC is an open technology network based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, to be discovered and engaged by any network-enabled application.
The platform allows buyers and sellers to connect and transact with each other online, regardless of what other applications they use. The buyers and sellers do not have to use the same platform or same mobile app to have a transaction. They can use different applications and still do business transactions.
The benefits of ONDC include access to more buyers; better discoverability of products and cost; autonomy on terms because of multiple choices for being digitally visible; lower cost of doing business; and more options for value chain services like logistics and fulfilment.
How To Place An Order Through ONDC?
Step 1: To place an order through ONDC, one needs to visit the ONDC website – https://ondc.org/.
Step 2: After visiting the website, click on the ‘Shop on ONDC’ tab on the homepage.
Step 3: Select a platform through which you want to order and click on ‘Shop Now’. The currently available platforms are Paytm, Mystore, Craftsvilla, To Life Bani, Meesho, Pincode, and Maginpin.
Step 4: Now, select the items you want and order as you do it on other platforms.
Step 5: Make payment. It’s done!
ONDC’s Journey So Far
In April 2022, ONDC commenced its Alpha testing with the first-ever real-world transactions and commenced its “beta testing” with grocery and food delivery domains in Bangalore at the end of September last year.
The network has grown steadily ever since, with quantum leaps especially in the last few months. For example, the number of retail merchants increased from more than 800 in January 2023 to over 35,000 as of now, while the number of orders increased from 50 per day in January to peaking at more than 25,000 orders per day in the last week.
ONDC has expanded its geographic footprint, with the number of cities with merchants present, having increased from 85 in Jan to over 230 now. ONDC also added mobility in Kochi, in January and in Bengaluru in April, which has seen a
jump to over 35,000 rides a day from these two cities.
At the same time, other domains like fashion, beauty & personal care, electronics & appliances were added since January this year, and are gradually expanding — over 600 merchants in these domains and more than 1,300 transactions have been completed since these domains have recently gone live.
Most of these orders have been intercity, with major intercity logistics providers like ShipRocket, Delhivery, Loadshare etc. being live as part of the network. These milestones have been achieved as ONDC’s Network Participants increased from 26 in January 2023 to 46 as of today.
Notable new additions on the buyer side include PhonePe’s Pincode and Airpay, while leading enterprises such as HUL and ITC, as well as promising startups, have gone live on the seller side.
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