Everybody is comparing the menu rates of Zomato and Swiggy to ONDC. So ONDC is an Open Network For Digital Commerce. Now there is a lot of hype created in the market that ONDC will ki Zomato and Swiggy but what if I tell you that ONDC is not going to have any effect on these big players but is helping them, Why? Let’s see
In the ONDC platform, the price difference of 20% is making you happy. Now McDonald’s, KFC, and Biryani You will get to eat that too at a low rate but then why Motilal Oswal who is a stakeholder in Zomato said that there is nothing like that,
ONDC will not affect Zomato’s growth strategies We are all thinking from the point of view of buyers and sellers. But now you think from the point of view of those players Like Zomato, Swiggy, Amazon, and Flipkart, ONDC comes as an opportunity for them,
Let’s understand how
- Discoverability for every business
ONDC, In simple language, is an open-source network where Chintan Market and Amazon Raju Vada Pav, and Burger King Small or big can sell things on the same platform Like Abdul has an all-in-one store.
Now let’s understand it practically, I want to buy an Apple Airpod. So I will check its price on Amazon or Flipkart for more savings, I will think I will buy it from the offline market, I will buy it from where I like the price But here you get caught up in the duopoly
I have only two options left because the offline store is far from my house and why should I go in the scorching sun, So Amazon and Flipkart options are left
In India, there are more than 19,000 e-commerce platforms A small e-commerce platform Kancha Electronics was giving me Apple Airpod at a 30% discount But neither I could reach it nor did they can reach me, So the first base pillar of ONDC is Discoverability for every business, for competition, You will get things at cheap rates And every business will be able to compete with big players.
- Price Manipulation
The second pillar is Like Zomato or Swiggy There are only two big players in this industry So they also manipulate the price according to their own You must have experienced this, Sometimes When the delivery boy is away from your location then its prices increase Or increase even if not found and many allegations have also been put On Zomato and Swiggy Because of their commission rates
Recently Swiggy’s valuation was down by 33% By Invesco So their ONDC works like an inter-operator Where aggregators, restaurants, customers, and delivery agencies work together, So if I don’t get Zomato or Swiggy’s delivery boy at my location then I can select Denzo or other third party delivery partner And I can take delivery from them.
- Everything for everyone
The third pillar is Everything for everyone which I call Doraemon accessibility Like for example, Trivago Where you can compare the prices of a hotel On different platforms and you can book the best price, The price that looks affordable
Similarly, in food, groceries, electronics, and many other categories you can see it in ONDC But
How ONDC Network Works?
Four people can connect with ONDC for a better experience In which your merchants, payment providers Logistics, and consumers But how?
For example, BoAt Is a seller network participant in ONDC and Craftsvilla is a buyer network participant So BoAt will work in the seller’s network and will be responsible for connecting the sellers with ONDC Through the seller’s app
Whereas Craftsvilla Will connect the buyers with ONDC Through the buyer’s app and will make the buyer things Like customer service, Seamless experience Better.
Now both of them will need technology To give you a seamless experience Whether they are buyers or sellers Gateway providers will connect with you Like Razorpay Or other fintech services and to provide an ecosystem to all of them Tech companies will connect with them and the sellers Are provided with software services
But it is clear that there is an opportunity for everyone. So, what is the use of big players? In fact, the competition has increased and why is ONDC not so flexible To work?
We tried it ourselves And we found some hidden cons Of ONDC
- Inter-operation
Let’s understand them, We understand this from the delivery partners One pillar of ONDC Which we discussed Is inter-operation Where there is no delivery option You can select another but this is the first con.
For small businesses, Zomato has access to about 1000 cities Where more than 2.5 lakh Delivery partners are connected with them If we see Swiggy 3 lakh delivery partners are connected with them, and according to the estimations They get 10-15% growth Every year in delivery or gig workers
And if we see the competition between both In logistics companies It is Dunzo Or Lodeshare Which has approx 11,000-20,000 Delivery partners which are in tier 1 cities. So if you want to order from ONDC Then you have only two options To take delivery from Zomato and Swiggy
Especially if I talk about tier 2 and tier 3 cities where you get to see more delivery partners from Zomato and Swiggy So ultimately you will order but the delivery partners will also be there
Yes, you may have to pay less commission And for delivery partners, It comes as flexibility But then the same thing comes, Zomato and Swiggy you will be delivered from both the partners, and because of whom this ONDC network has been made will promote this duopoly more in comparison to their small competitors, The condition is that there is a local delivery service in your city.
- The second biggest con of ONDC is Seamlessness
Now we order food through the Buyers app in ONDC Like Paytm or MagicPin Where we saw some problems in the coordination of maps and also saw a delay in delivery time If I talk about tier 2 and 3 cities and let me remind you ONDC is now progressive in the alpha stage
In the beta stage, only Bangalore and Delhi have come out to be a properly active stage, So now it is in the testing phase So obviously it is unstable too.
- The third biggest con is Assuredness
When you buy from Flipkart and Amazon you get to see the label of Assured that this is a real product and it is listed by the manufacturer or it is Assured according to Flipkart or Amazon From there, a sense of trust is built In a customer Whereas, in ONDC, this is a big challenge that you don’t know which services are fake or real.
Because if all the people are connected to this network then fake products can also be promoted So there you won’t get a good idea of Which seller has which thing is real or fake
- The fourth con is the Refunds and customer services
Refunds and customer service are a big burden where on Zomato, Swiggy, Amazon, and Flipkart you get to see dedicated refund policies Or customer service policies whereas in ONDC, you get to see a link to customer support.
So if a wrong thing is delivered to you in ONDC then third-party customer service will provide you service, not the company that has delivered So there, in refunds policies, a big challenge comes up In ONDC
By the way, what do you think, Is ONDC being hyped a lot at the moment or not?
Do share your views in the comments.
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