ONDC targets 200K transactions per day by end of 2023: Report
ONDC aims to reach 100,000 daily transactions by the end of this year from the mobility sector, which currently contributes to 60,000 daily transactions on the platform.
Open Network Digital Commerce (ONDC) has set a target to reach 200,000 transactions per day by the end of this year.
At present, 50,000 retail merchants contribute 15,000-20,000 daily transaction volume on the platform, according to an equity research report by ICICI Securities. The mobility sector is responsible for an additional 60,000 transactions per day.
The government-promoted network is aiming for 100,000 daily transactions from the retail sector and the rest from the mobility space. It also wants to focus on scalability and appeal to a wide range of businesses, the report noted based on a meeting with ONDC MD and CEO Thampy Koshy and Rahul Handa, Senior Vice President of Strategic Initiatives.
As of now, it takes one hour for food delivery and approximately two hours for delivery of groceries ordered through the open ecommerce platform. These timeframes are a little higher as compared to its numerous for-profit competitors, however, the report noted ONDC acknowledges the need for seamless exception handling and online dispute resolution (ODR) mechanisms to maintain a trustworthy environment for all participants and is working towards it.
"ODR will have access to the whole digital trail to take a decision in the matter of dispute," ONDC said in the report.
It is also working to add ratings for sellers through a network-wide scoring system, incorporating rating, scoring, and badging components. hopes it will enable buyers and sellers to have a unified, reliable metric for evaluating each other's performance, as per the report.
"To ensure a level playing field, sellers are encouraged to commit to their delivery timelines upfront. This commitment will be measured against their actual performance, contributing to their network-wide score," ONDC executives noted.
ONDC also enables sellers who do not have an existing agreement with a delivery service to avail of last-mile services from prominent players such as , , and . However, nearly half of the sellers on the platform have a delivery partner.
"Shiprocket, which provides logistics services to a lot of small vendors, has also decided to become a seller application to service those vendors who aren’t digitally savvy or not happy with T&C of incumbent players," ONDC said in the report.
The top seller applications using the platform are magicpin and Go Frugal.
ONDC also emphasised it prioritises network performance rather than tracking Gross Merchandise Value (GMV) to keep competitive information secure for buyers and sellers.
The top buyer applications for the platform are Paytm, PhonePe, magicpin, and My Store.
The network is registered as a Section 8 company, which means it will not go public or pay dividends, instead focusing on investments to increase merchant participation. The platform plans to monetise through marginal transaction-based fees, creating a self-sustaining financial model to support its growth and expansion plans.
ONDC, however, said that it will not make its own app as it does not want to be seen competing with anyone, the report noted.
"ONDC’s intention is to only create an ecosystem to enable commerce," it noted.
Edited by Kanishk Singh