ONDC (Open Network Digital Commerce), a government-backed network enabler platform, is creating a buzz in the industry with its significantly lower food prices compared to industry giants Swiggy and Zomato. The platform has announced a staggering 500-fold increase in its daily transactions, marking a major milestone in its growth.
Having started its pilot phase in April of last year, followed by a beta testing period in September 2022, ONDC has experienced a remarkable surge in its daily transactions. From a mere 50 orders in January of this year, the platform now boasts an impressive 25,000 orders per day.
ONDC attributes this surge to the rapid onboarding of retail merchants onto its platform. The number of retail merchants has skyrocketed from around 800 in January to a staggering 35,000 within just five months, reflecting a remarkable increase of 4,275%.
Expanding its reach geographically, ONDC has also expanded from operating in 85 cities at the beginning of the year to now covering more than 230 cities.
Furthermore, the platform has reported a significant increase in daily rides in the two cities where it recently introduced mobility services, Kochi and Bengaluru, with a reported 35,000 rides per day.
In addition to the food and grocery sector, ONDC is witnessing a gradual increase in the number of merchants from various domains including fashion, beauty and personal care, and electronics and appliances. With over 600 merchants from these sectors, the platform has successfully completed over 1,300 transactions, many of which have been intercity and facilitated by logistics partners such as Shiprocket, Delhivery, and Loadshare.
ONDC’s network participants have also grown from 26 in January to 46 currently, including prominent players like PhonePe’s Pincode and Airpay on the buyer side, as well as ITC, HUL, and several startups on the seller front.
While ONDC has gained attention in recent weeks, experts have differing opinions on its impact on the industry. Financial brokerage firm Motilal Oswal Securities has stated that ONDC is not an immediate threat to Zomato, although it could pose a potential challenge if it scales up across categories and achieves greater efficiency compared to the established players.
Nonetheless, the emergence of ONDC and its substantially lower food prices has sparked discussions about the potential disruption it could bring to the food-tech industry, challenging the duopoly enjoyed by Swiggy and Zomato.
As the industry observes ONDC’s growth, industry players are closely monitoring its trajectory and its potential to reshape the competitive landscape in the food delivery space.
