Can ONDC make a dent in foodtech?

In the world of food-tech, two names dominate–Swiggy and Zomato. But now, it faces stiff competition from Open Network For Digital Commerce (ONDC) - a government-backed network enabler. Akin to how ChatGPT is an open-source solution, ONDC is an open-source ecommerce platform. 

It came into inception sometime last September when the beta version of this app was launched in Bengaluru. Since then, ONDC has expanded to over 200 cities in India. 

What is ONDC? 

It’s an open-source network where users can order online products or services. In an era where e-commerce is dominated or even completely in the hands of organizations like Amazon and Flipkart (in India, at least), ONDC is an initiative that enables small businesses to gain equal opportunity. 

Its main idea is to connect two parties: buyers and sellers. Sellers here refers to all sellers from hyperlocal stalls to larger companies. Through ONDC, these parties can communicate with customers. 

Part of its appeal is the absence of high commission charges from local stores. 

Can ONDC disrupt the e-commerce business? 

While it isn’t possible to make definite claims or statements, it is also not possible to negate the possibility that it has the potential to create disruption within the food-tech industry. 

This ‘benefit’ of ONDC has been experienced by various users who claim to have seen cheaper prices on food than on other aggregator platforms.

Bengaluru users decided to utilise the platform for food over other categories and found that rates displayed on ONDC were comparatively cheaper than other food apps. In addition, they also mentioned that they never saw a ‘delivery fee’ tab upon checkout. 

That’s not to say the company doesn’t have some drawbacks. Unlike Amazon or Swiggy, ONDC does not have a dedicated customer support helpline where people can register complaints/queries. Further, there’s no official ONDC app per se, and its service is available through other platforms such as Paytm. 

Needless to say, a lot more ONDCs will have to upgrade to ‘disrupt’ the e-commerce business in India. 

Will ONDC replace Swiggy and Zomato? 

While reels on Instagram may have written off the battle in ONDC’s favour,  price competitiveness may not entirely be sufficient to replace big food delivery giants like Zomato and Swiggy. Analysts from JM Financial said on May 17 that ONDC is not close to shaking the food delivery market.