Govt Launches ONDC To Control The Dominance Of Flipkart & Amazon
The dominance of Flipkart & Amazon types companies has increased so much in the Indian e-commerce market that no other small firm or businessman can do their business well.
The government today launched its major program, the Open Network for Digital Commerce (ONDC), for the general public in Bengaluru in an effort to lessen the dominance of e-commerce behemoths like Flipkart and Amazon.
The government intends to support small merchants with the aid of ONDC and develop an alternative to hegemonic multinational corporations like Amazon and Walmart, which together account for more than half of India’s rapidly expanding e-commerce sector.
What is ONDC?
Local business owners in a variety of industries, including mobility, shopping, food order & delivery, hotel booking, and travel, will be able to include their goods and services in any app’s search results thanks to ONDC.
For instance, a consumer shopping for any goods on Amazon would also receive results from Flipkart and other merchants on the Amazon app if both Amazon and Walmart’s Flipkart integrated their platforms with ONDC.
ONDC Launched In Bengaluru
Customers in Bengaluru may now shop from a single buyer app of their choosing across numerous categories of goods and services.
Customers can initially place their orders using any buyer apps connected to the ONDC network in the two categories of restaurants and groceries. As of right now, ONDC offers Mystore, PayTM, and Spice Money as buyer apps.
Piyush Goyal, the minister of trade and industry, praised it in a tweet as democratic, economical, and empowering for consumers and small companies.
Bengaluru consumers to get a whole new shopping experience !— Piyush Goyal (@PiyushGoyal) September 29, 2022
Beta testing of the Govt's revolutionary Open Network For Digital Commerce to begin from tomorrow.
It is democratic, cost-effective & empowers buyers and small businesses. pic.twitter.com/HJOL78ZxvN
Why Does India Need ONDC?
The government believes that ONDC will aid in reducing the monopoly of major firms and expanding the market for small business owners.
The open network for digital commerce’s experimental phase was introduced by the ministry of commerce and industry in April in five cities: Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore. It was permitted for people to transact in these cities.
Up to 20 reputable national organizations have committed a total of ₹ 255 crore to ONDC.
Lenders have already pledged investments, including State Bank of India, UCO Bank, HDFC Bank, ICICI Bank, and Bank of Baroda.
A collection of standards called ONDC is available for voluntary implementation by retailers, logistics companies, and payment processors.
Paytm Mall Becomes The First On ONDC
The parent company of Paytm Mall, Paytm E-commerce Pvt Ltd (PEPL), has launched the ONDC network’s beta testing in Bengaluru, Karnataka, and made it live. As a result, it was the first app to launch in beta mode on the platform.
According to Paytm Mall, the decentralization of the Indian ecommerce industry officially began with the launch of the ONDC network. Additionally, the network will provide customers with accessibility and inclusivity.