ONDC Expansion Decisive: Indian government urges e-commerce giants Amazon and Flipkart to integrate Open Network for Digital Commerce (ONDC) into their platforms by listing ONDC storefronts on their respective homepages. I requested it. The move is aimed at helping the government-backed network expand its operations and improve its distribution capabilities, according to executives familiar with the matter.
Executives explained that the main objectives are to increase ONDC's operational efficiency, increase order fulfillment rates, and address issues related to defects and delays. ONDC Managing Director T Koshy told ET that the network is “in active discussions with Amazon and Flipkart for gradual participation and we expect results soon.” he said.
Neither Amazon nor Flipkart has made any official comment on the matter. This development is particularly significant as ONDC, which began operations in January 2022, was initially introduced as a means to counter the market dominance of Amazon and Flipkart in India's e-commerce space.
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Amazon's presence in India is significant, with a vast network of over 1.1 million sellers, more than half of whom are located in tier-2 cities across the country.
In an announcement last February, Amazon revealed its intention to integrate its extensive logistics network and smart commerce services, covering all stages from collection to delivery, with ONDC. SmartCommerce, a software solution provided by Amazon, enables small and medium-sized businesses in India to establish and expand their businesses across various digital platforms. “These small and medium-sized businesses will now be able to participate in the ONDC network,” Amazon said.
At the same time, Flipkart's logistics subsidiary Ekart was in an advanced stage of integration with ONDC when Amazon made this announcement. In fact, Flipkart's logistics arm had already successfully joined the network.
The initial integration between Amazon and ONDC will be limited to last-mile delivery through Amazon Transport Services, with no immediate plans to integrate Amazon India's core markets with the government-backed network, the people said. That's what it means.
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If Amazon decides to fully integrate its core marketplace with ONDC, its users will have access to a vast catalog of products from the more than 105,000 non-mobility sellers currently active on the network. . This integration gives smaller players the opportunity to join the platform without incurring large fees or going through a separate onboarding process on Amazon.
ONDC already operates across a variety of sectors including grocery and fast-moving consumer goods, food and beverage, ride-hailing services, agricultural products, fashion and apparel, health and wellness, beauty and personal care, electronics and appliances, home and kitchen. Establishing a presence. , business-to-business transactions, exports, subway ticket sales, financial products.
The network has seen significant growth, with the number of “countable cities” (cities that receive 100 or more orders per month) increasing to 622 in the January-March quarter.
ONDC is currently in talks with the National Restaurant Association of India (NRAI), a representative body for over 500,000 restaurants across the country. The goal of the discussions is to create seamless last-mile connectivity for food delivery services, including order tracking and discoverability, food service industry executives said.
ONDC collaborated with NRAI to establish the Council of Champions. The council includes prominent representatives from various sectors of the restaurant industry, including casual and fine-dining chains, quick-service restaurants, cloud kitchens, cafes, and regional players. Executives directly involved with the council said the aim was to ensure growth and facilitate smoother and wider participation from the sector.
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ONDC is a government-backed network that competes directly with independent food delivery aggregators such as Swiggy and Zomato, and has successfully integrated end-to-end services for early adopter buyer-seller platforms such as Magicpin and Paytm. did.
ONDC has experienced significant growth over the past 14 months, increasing network participants from 24 to 81 companies. The network has expanded domain categories from 3 to 13 and added various buyer apps such as Paytm, Snapdeal, Magicpin, Pincode, Mystore, Rapidor, and more. , NoBrokerHood, Ola, and nStore generate significant order volumes.
“Unlike dedicated food delivery apps, ONDC has multiple options, so the concern is who is driving the traffic and obsession to restaurants,” said a food service executive. Ta. “More scale than this has not yet been achieved and will happen over time.”
ONDC has processed over 49.79 million transactions since its official launch in January 2022. Mobility services, mainly ride-hailing apps such as Nanmayatori, account for more than 50% of his total monthly orders. From February 2022 to March 2023, mobility services generated more than 32.2 million orders, while non-mobility services accounted for more than 17.5 million orders.
During the same period, the food and beverage category recorded over 5.78 million orders, over 1.74 million grocery orders, over 2.64 million fashion orders, and over 1.35 million home and kitchen orders. .
Several prominent companies and platforms from the food and beverage industry have joined the network, including Wow Momo, McDonald's, and Domino's Pizza. Marico, P&G and Hindustan Unilever in the FMCG sector. Nanma Yatri, Kochi Open Mobility Network, Ola in the field of mobility. More recently, major chains such as Barbeque Nation and Cloud's kitchen aggregator Rebel Foods (which operates Behrouz Biryani, Oven Story Pizza and Faasos) have also joined his ONDC.
ONDC conducted an alpha rollout in five cities in April 2022 to test live trading with a private group of sellers and buyers.
Executives explained that the main objectives are to increase ONDC's operational efficiency, increase order fulfillment rates, and address issues related to defects and delays. ONDC Managing Director T Koshy told ET that the network is “in active discussions with Amazon and Flipkart for gradual participation and we expect results soon.” he said.
Expanding
Neither Amazon nor Flipkart has made any official comment on the matter. This development is particularly significant as ONDC, which began operations in January 2022, was initially introduced as a means to counter the market dominance of Amazon and Flipkart in India's e-commerce space.
Also read | India Mission 2047: How India aims to become a developed economy – high-speed highways, electric mobility, digital payments and more
Amazon's presence in India is significant, with a vast network of over 1.1 million sellers, more than half of whom are located in tier-2 cities across the country.
In an announcement last February, Amazon revealed its intention to integrate its extensive logistics network and smart commerce services, covering all stages from collection to delivery, with ONDC. SmartCommerce, a software solution provided by Amazon, enables small and medium-sized businesses in India to establish and expand their businesses across various digital platforms. “These small and medium-sized businesses will now be able to participate in the ONDC network,” Amazon said.
At the same time, Flipkart's logistics subsidiary Ekart was in an advanced stage of integration with ONDC when Amazon made this announcement. In fact, Flipkart's logistics arm had already successfully joined the network.
Expanding
Also Read | Indian Railways' 100-day mega plan: Vande Bharat sleeper, bullet train, J&K rail projects including Chenab bridge and more – Know more
If Amazon decides to fully integrate its core marketplace with ONDC, its users will have access to a vast catalog of products from the more than 105,000 non-mobility sellers currently active on the network. . This integration gives smaller players the opportunity to join the platform without incurring large fees or going through a separate onboarding process on Amazon.
ONDC already operates across a variety of sectors including grocery and fast-moving consumer goods, food and beverage, ride-hailing services, agricultural products, fashion and apparel, health and wellness, beauty and personal care, electronics and appliances, home and kitchen. Establishing a presence. , business-to-business transactions, exports, subway ticket sales, financial products.
The network has seen significant growth, with the number of “countable cities” (cities that receive 100 or more orders per month) increasing to 622 in the January-March quarter.
ONDC is currently in talks with the National Restaurant Association of India (NRAI), a representative body for over 500,000 restaurants across the country. The goal of the discussions is to create seamless last-mile connectivity for food delivery services, including order tracking and discoverability, food service industry executives said.
ONDC collaborated with NRAI to establish the Council of Champions. The council includes prominent representatives from various sectors of the restaurant industry, including casual and fine-dining chains, quick-service restaurants, cloud kitchens, cafes, and regional players. Executives directly involved with the council said the aim was to ensure growth and facilitate smoother and wider participation from the sector.
Also read | Mini Goldilocks moment!Why Motilal Oswal thinks India is big, bold and brilliant
ONDC is a government-backed network that competes directly with independent food delivery aggregators such as Swiggy and Zomato, and has successfully integrated end-to-end services for early adopter buyer-seller platforms such as Magicpin and Paytm. did.
ONDC has experienced significant growth over the past 14 months, increasing network participants from 24 to 81 companies. The network has expanded domain categories from 3 to 13 and added various buyer apps such as Paytm, Snapdeal, Magicpin, Pincode, Mystore, Rapidor, and more. , NoBrokerHood, Ola, and nStore generate significant order volumes.
“Unlike dedicated food delivery apps, ONDC has multiple options, so the concern is who is driving the traffic and obsession to restaurants,” said a food service executive. Ta. “More scale than this has not yet been achieved and will happen over time.”
ONDC has processed over 49.79 million transactions since its official launch in January 2022. Mobility services, mainly ride-hailing apps such as Nanmayatori, account for more than 50% of his total monthly orders. From February 2022 to March 2023, mobility services generated more than 32.2 million orders, while non-mobility services accounted for more than 17.5 million orders.
During the same period, the food and beverage category recorded over 5.78 million orders, over 1.74 million grocery orders, over 2.64 million fashion orders, and over 1.35 million home and kitchen orders. .
Several prominent companies and platforms from the food and beverage industry have joined the network, including Wow Momo, McDonald's, and Domino's Pizza. Marico, P&G and Hindustan Unilever in the FMCG sector. Nanma Yatri, Kochi Open Mobility Network, Ola in the field of mobility. More recently, major chains such as Barbeque Nation and Cloud's kitchen aggregator Rebel Foods (which operates Behrouz Biryani, Oven Story Pizza and Faasos) have also joined his ONDC.
ONDC conducted an alpha rollout in five cities in April 2022 to test live trading with a private group of sellers and buyers.
