ONDC

Key Highlights:

  • 24 eCommerce startups are working to integrate with the government’s ambitious ONDC.
  • The startups integrating with the network are Flipkart’s logistics arm eKart Logistics, Dunzo’s hyperlocal delivery startup, and payment service provider PhonePe.
  • Under Piyush Goyal, the Department for Promotion of Industry and Internal Trade (DPIIT) created ONDC.

 

24 eCommerce startups are working to integrate with the government’s ambitious Open Network for Digital Commerce (ONDC) project soon after rolling out its pilot phase. On April 29th the platform went live in five cities, including Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore.

Among the startups integrating with the network are Flipkart’s logistics arm eKart Logistics, Dunzo’s hyperlocal delivery startup, and payment service provider PhonePe.

A few cities, including Shillong and Delhi, have begun using ONDC’s real-time retail and food delivery services. As of now, ONDC is mainly focused on retailers and restaurants, according to the report.

Several processes are being strengthened ahead of the official launch of the project. The entire exercise will likely take six months to stabilise. A trader catalogue is making its way to Bhopal and Coimbatore, and the startups are undergoing various phases of integration which will probably take at least two to three months.

“With this pilot phase, we hope to learn how this works in the real world, where actual payments are made, deliveries are made, orders are cancelled, and refunds are processed. When these lessons are known, we will create a playbook, which will be a standard,” said Anil Agrawal, additional secretary for the Department for Promotion of Industry and Internal Trade (DPIIT).

On the other hand, Agrawal said the ONDC hopes to onboard 3 million sellers and one million retail merchants through its online marketplace. The company expect to expand to 100 cities during the next six months.

Under Piyush Goyal, the Department for Promotion of Industry and Internal Trade (DPIIT) created ONDC. It was incorporated as a non-profit company led by the private sector on December 31, 2021.

This initiative aims to move digital commerce from a platform-centric model to a networked model, democratizing it. Over multiple platforms, Amazon and Flipkart have been questioned multiple times for their dominant position in the growing Indian eCommerce market.

In a report by Bain & Company, India was ranked as the world’s fourth-largest retail market with an estimated $810 Bn in sales.

Furthermore, major banks have also guaranteed to invest in ONDC.SBI acquired a 7.84 per cent stake in the newly announced initiative for INR 10 crore. Before that, few banks including Kotak Mahindra, HDFC and Axis Bank even picked up a stake in the ONDC for an amount of INR 10 Cr each.

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