With ONDC, we’re witnessing a transformative shift towards a fairer marketplace, where innovation meets accessibility, benefiting businesses and consumers alike – Pavitra Pradip Walvekar
The Indian e-commerce landscape is witnessing a monumental shift with the advent of the Open Network for Digital Commerce (ONDC). Pavitra Pradip Walvekar, the Pune-based promoter-director of Kudos Finance and Investments Private Limited, sheds light on how ONDC is poised to revolutionize the market.
The Open Network for Digital Commerce (ONDC) is a government-led initiative aimed at democratizing digital commerce in India. Launched with the vision to create a level playing field, ONDC seeks to enable small and medium enterprises (SMEs) and local businesses to compete with established e-commerce giants. The initiative aims to dismantle the monopolistic tendencies of large e-commerce platforms by providing an open, inclusive, and interoperable network that fosters competition and innovation.
ONDC operates as a non-profit entity, focusing on building a robust infrastructure that supports the seamless exchange of goods and services across a unified digital network. “ONDC represents a pivotal shift in India’s e-commerce landscape, leveling the playing field by empowering SMEs with unprecedented access and visibility. By reducing barriers to entry and fostering competition,
ONDC not only promotes innovation and affordability but also democratizes digital commerce, ensuring that all businesses, regardless of size or scale, can thrive in a fair and inclusive marketplace.” Says Pavitra Pradip Walvekar.
ONDC’s operational framework is built on the principles of decentralization, interoperability, and inclusivity. Here’s a closer look at how it functions: ONDC operates uniquely as a decentralized network, distinguishing itself from traditional e-commerce platforms that function through centralized entities. This structure enables direct interaction between sellers and buyers, eliminating the necessity for intermediary platforms and reducing dependence on a single entity. Moreover, ONDC promotes interoperability by establishing standardized protocols for digital commerce, facilitating seamless transactions across various e-commerce applications and platforms.
This approach not only simplifies the process for buyers purchasing from different platforms but also enhances overall system efficiency. By significantly lowering entry barriers, ONDC fosters inclusivity within the digital commerce landscape, allowing small retailers, local businesses, and individual entrepreneurs to access a broader market without facing prohibitive costs or stringent platform policies. Embracing open standards for cataloging, order management, inventory, and logistics further enhances ONDC’s capability to ensure effective communication and integration across the supply chain, optimizing the transactional process for all stakeholders involved.
Since its inception, the government-backed Open Network for Digital Commerce (ONDC) has achieved over 7.1 million cumulative orders by February 2024. In January alone, ONDC surpassed 6.75 million cumulative orders, with 52.8% (3.56 million) being mobility orders and 47.2% (3.19 million) non-mobility orders.
The platform now includes over 370,000 sellers and service providers, ranging from top brands to farmers and taxi drivers, and operates in 588 ‘countable cities,’ representing about 70% of Indian cities. ‘Countable cities’ are defined as those with more than 100 orders per month over the past three months.
Overall, ONDC has facilitated transactions in more than 800 cities nationwide. Mobility services via ONDC are active in seven cities: Bengaluru, Mysuru, Kolkata, Hyderabad, Delhi, Chennai, and Kochi, with the recent addition of Chennai Metro train services marking a significant step towards multimodal mobility through the network.
Pavitra Pradip Walvekar states,”ONDC’s rapid ascent to processing millions of cumulative orders underscores its key role in reshaping India’s digital commerce landscape. By empowering a diverse array of sellers and expanding its operational footprint across numerous cities, ONDC is clearly demonstrating its capacity to facilitate widespread economic growth and accessibility.”
He adds, “The platform’s recent strides in enhancing mobility services, including the integration of Chennai Metro, highlight its commitment to innovating and delivering seamless solutions. These achievements underscore ONDC’s transformative impact and its ongoing journey toward further empowering businesses and consumers alike.”
By dismantling barriers that shield large e-commerce monopolies, ONDC encourages innovation, drives down prices, and raises service quality as businesses vie for customer loyalty. SMEs stand to benefit from heightened visibility and broader market access without the financial burdens and stringent regulations typical of traditional platforms. Consumers, in turn, gain greater diversity in product offerings and potential savings due to reduced transaction costs facilitated by ONDC’s interoperable framework.
This openness also cultivates a fertile ground for business innovation, allowing companies of all sizes to explore new models and technologies freely. Moreover, ONDC’s inclusive approach extends economic opportunities to rural and local enterprises, enabling them to participate more actively in the digital economy and expand their market reach nationally and internationally.
The Open Network for Digital Commerce (ONDC) represents a bold step towards a more equitable and dynamic e-commerce landscape in India. ONDC has the potential to transform how businesses operate and how consumers shop in the digital age. As Pavitra Pradip Walvekar emphasizes, the success of ONDC will not only reshape the e-commerce industry but also contribute significantly to the broader economic development of India.
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