Will ONDC compete with the already popular e-commerce platforms of Zomato, and Swiggy?

Will ONDC compete with the already popular e-commerce platforms of Zomato, and Swiggy?

A big challenge has arisen for the big companies present in the domestic e-commerce market. The new headache of these companies is not a private company, but a platform set up by the government has rung alarm bells for the entire sector including Flipkart, and Amazon. 

If we look at the online food ordering business of the country, only two companies dominate this market. The first name in this is Zomato while the second is Swiggy, now the government platform ONDC has started ending the dominance of these two companies in the online food ordering business. 

The Open Network for Digital Commerce and ONDC empowers it to sell foods directly to consumers through buyers. If this is beneficial on both the front of aggressive pricing and profitability, then it can prove to be a game changer in food delivery. These days ONDC i.e. Open Network for Digital Commerce is being discussed a lot on social media. 

ONDC Platform, launched on the initiative of the Ministry of Commerce, Government of India, is being considered a challenge for e-commerce companies charging huge commissions from customers. Will ONDC platform compete with Ecommerce platforms that have already popular in the country?

 

Going forward, what will be different in ONDC platform that will make it better than other commerce platforms? Now, because of the common thinking that has been going on for a long time, if the government works were lax, then how would ONDC be able to handle this e-commerce sector of the country in a better way? 

Let's try to understand this issue. At present, if you see the pictures going viral on social media and believe them to be correct, then a burger worth ₹ 283 sold in the market on the ONDC platform will cost only ₹ 110. On the other hand, for veg steamed momos, you may have to spend ₹ 170 on other commerce companies. 

ONDC big will be available for just ₹85. That is, there is a huge difference in prices. For more than a decade between the e-commerce platform and ONDC, e-commerce i.e. online business is going on very fast in the whole world including India. If we look at the figures, today about 6.5% of the total retail business in the country is through e-commerce. 

More than 40% of all online transactions in the world are taking place in India. Now here that big question arises how the government stamped ONDC was able to play the role of handling such a huge market of e-commerce, then you can get the answer from UPI. This too was brought by the government itself. 

Paytm, PhonePe, Amazon Pay, and Google Pay, standing like a strong link between all of them and you, UPI is a great example of success. Even though the daily updating technology of e-commerce has taken it out of the city limits and made it accessible to the villages. Even if a person sitting in a faraway village can easily order any goods or services from his home by clicking a button. 

Can take advantage of it, but it also has a huge disadvantage and that is that it is killing local businesses and the pressure on selected companies in the e-commerce market is increasing. What is happening due to this, the traditional business of India is facing huge losses and the platform of point ONDC will work to save it from this.

 

Because here the question is not only about affecting the local business or charging hefty commissions from e-commerce companies, but the matter is more serious than commerce companies discriminating between different sellers due to their supremacy over data, Due to which the small vendors have to bear a lot of loss.

 

These companies claim to provide cheap goods and services to the customers, but it also has a dark side and that is a lot of tricks are used to keep small shopkeepers, travel agents, and vendors out of the market. If seen, E-commerce companies acting as aggregators are siphoning off a major portion of the income of small vendors and poor workers, and this is where it begins. 

The work of platforms like ONDC was started by the Indian government. ONDC was created to protect the interests of sellers and consumers. ONDC is a company registered under section 8 of the Companies Act. What will happen through ONDC? This is a matter to be understood, but the ONDC network is giving a channel to e-commerce. 

E-commerce companies will not be able to discriminate between sellers or buyers by using their possession of data and technology like artificial intelligence. ONDC has been developed as a platform to enable consumers to access a wide variety of vendors and service providers. The objective of ONDC is to promote the business of sellers based on competition rather than a monopoly in the E-commerce market.

 We can say that ONDC is different from general E-commerce companies and it will act as a bridge between different platforms and customers, which will not aim to earn big profits like E-commerce companies. Till now the sellers and service providers of General Ecommerce had to register on the platform, so they were dependent on those platforms. 

In such a situation, the consumer can see only those sellers on the platform who are registered at that place but this is not the case with ONDC. ONDC system works through Geographic Information System and provides facilities to lakhs of vendors and crores of consumers based on their physical location. 

ONDC is a common platform where a wide range of products like grocery, food, and cleaning materials will be available. From now on, understand that the common shopkeeper who was not able to sell his goods online, can also join it and people can buy products directly from them. 

People and shopkeepers will no longer have to depend on Flipkart, Amazon, Zomato, blinkit, or swiggy to buy the same, and this is where a big challenge arises for these companies. However, ONDC has been introduced recently, so the business through it is also decreasing considerably. But it is expected that it will expand rapidly in the coming times and this will stop the exploitation of consumers and sellers.