Business
ONDC Set To Challenge E-Commerce Giants; Daily Transactions Could Rise To 100,000 From Next Year
Open Network for Digital Commerce. (Representative image)
India's e-commerce platform is expected to reach 100,000 transactions per day for retail and food delivery by January next year, according to T Koshy, the Chief Executive Officer for the Open Network of Digital Commerce (ONDC).
ONDC aims to challenge the dominance of e-commerce giants like Amazon and Flipkart by promoting open networks for local commerce.
By integrating into ONDC, businesses of all types can access buyers, sellers, and delivery partners necessary for e-commerce.
During the Global Fintech Fest, Koshy revealed that ONDC is currently facilitating 40,000 retail transactions at its peak.
Presently, ONDC operates in the retail and mobility sectors.
It initially started as a grocery and food delivery network, onboarding merchants in this industry.
Later, it expanded into the mobility sector by incorporating the Bengaluru taxi platform, Nammi Yatri.
ONDC's mobility business is outperforming its retail network, with an average of 100,000 transactions per day in Mysore, Kochi, and Bangalore.
The company plans to announce a pilot project in another major city for its mobility services soon.
ONDC is working towards democratising the e-commerce space for all players, allowing for fair competition and equal opportunities.
ONDC has a network of approximately 68,000 merchants, including well-known FMCG companies like PepsiCo and Mondelez.
Additionally, another major FMCG brand is expected to join the network soon.
In the coming months, ONDC plans to offer financial products from banks and NBFCs on its platform.
According to a report from buisnessline, banks are also seeking approval from RBI to become buyer apps on ONDC.
This would allow consumers to purchase groceries or food through banking apps.
Recently, Nammi Yatri, ONDC's taxi platform in Bengaluru, implemented a daily fee of Rs 25 for auto drivers using its network.
Although ONDC currently does not charge merchants to use its network, it plans to introduce a minimal fee once transaction volumes increase.
Koshy stated, "We will likely introduce a nominal fee for businesses on our network once there are sufficient volumes."
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