What is ONDC all about and how does it work?

As the buzz around ONDC, the government’s answer to private e-commerce apps, grows louder on social media, many customers in Bengaluru are giving it a try. Launched in Bengaluru for beta-testing last September, Open Network for Digital Commerce (ONDC) can be used to order a host of products and services. A not-for-profit initiative by the department for promotion of industry and internal trade (DPIIT), it is reportedly active in 236 cities now, and has 35,000-plus sellers onboard.

. ONDC is intended to provide a level-playing field to small businesses engaging in e-commerce, in a market dominated by big players such as Amazon, Flipkart, Swiggy and Zomato. It also offers inter-operability between sellers, delivery startups, and technology providers.

. Because of a lack of tech capability, small and hyperlocal sellers pay high commissions to aggregator platforms and are left with thin margins. With ONDC, businesses can engage with consumers directly. Buyers can use the app to discover more sellers and better prices. While ONDC is onboarding businesses across categories — grocery, fashion, home decor, electronics, healthcare, logistics, mobility and urban services, Bengalureans Metrolife interviewed had used it mostly to order food and groceries.

. ‘Small difference’

. Many Bengalureans have discovered ONDC lately because of posts and reels on Instagram, which show that its pricing is cheaper.

. But college student Abhigyan Duarah initially feared that ONDC was “one of those online scams” on Instagram. He gave in to curiosity and ordered food thrice. “It was cheaper by Rs 60-70 each time. There was no mention of a delivery fee. It was a huge deal. But I don’t see the price difference anymore,” Duarah says. He has gone back to older apps.

. Content writer Pallavi N B’s experience has been similar. “When I ordered French fries over the weekend, it was cheaper by Rs 36 on ONDC. But when I placed the same order from the same outlet on Monday, the difference was down to Rs 20,” says the Hosakerehalli resident. Communications professional Akash Mehrotra says he wasn’t enthused by the price difference of Rs 30-40 when he ordered chole bhature from a restaurant.

. Many attribute the price difference to the discounts sellers could have been offering to attract buyers to ONDC.

. Where to complain?

. Pallavi says the interface should provide a customer care number in case problems with the order. “I could not find that option,”she says.

. Kunal Kapoor, who works in the real estate sector, was stoked to get a burger for Rs 161 on ONDC. It used to cost him double on other apps. But in JP Nagar where he lives, he finds very few businesses listed on ONDC and none that deliver past 11 pm. “The delivery also takes longer,” he says.

. However, Pankaj Chauhan, who co-runs a business podcast, has seen the network improve. “In January, we ordered two soft drinks from a store a short distance away from our office in HSR Layout. It arrived a week later, and just one came! But this month, the experience was seamless,” he says. Anup Pai, founder-CEO of eSamudaay, says, “Ultimately, the quality of customer service will matter.” His startup empowers small businesses with digital tools.

. Most customers Metrolife spoke to said they would prefer ONDC as a separate app. Currently, it is available on apps such as Paytm, Phonepe’s Pincode, Magicpin, Mystore, and Craftsvilla.

. Businesses speak

. Many businesses are now joining the network. Gourmet Garden, which delivers fruits and vegetables, joined last week. COO Pramod Prasad explains why he signed up: “Deductions are about 5% on ONDC. Other apps take up to 30% in commissions”. A representative from Istoria, a cafe on Richmond Road, says, “On other apps, we are forced to participate in discounts from time to time, and the cuts can go up to 42%.” The cafe, shut for renovation, will start servicing via ONDC by July. Beijing Bites, a chain of Chinese restaurants, has been approached by ONDC to come on board and it is keen to join, says Mohammed Ibrahim Akram, one of the directors.

. Likewise, food startup Samosa Singh, and Namma Yatri, an auto aggregator app run by a drivers’ union, are in the process of onboarding. Mamta Gahlaut, owner of Cravoury, a cloud kitchen on Sarjapur Main Road, has registered but doesn’t know what to do next. “It has been two weeks. I haven’t received a call or message confirming if I can go live,” she says.

. Food biz weighing pros and cons

. In the recent past, the F&B industry has slammed food delivery apps for collecting exorbitant commissions and not sharing customer data. “So the ONDC does appear to be a major problem-solver,” says Mukesh Tolani, head of the Bengaluru chapterof National Restaurant Association of India. The association is organising an online town hall on May 18 to understand the pros and cons of ONDC. Next week, Hotel Empire, Vidyarthi Bhavan and a few other members of the Bruhat Bengaluru Hoteliers Association will test ONDC. “Depending on how it goes, we plan to add 100 hotels by early June,” says president P C Rao.

. How to use it

. ONDC is not an app. It is available on apps such as Paytm, PhonePe’s Pincode and Magicpin.

. Order products and services as you would on other e-commerce apps.

. Sellers use their staff or delivery and logistic startups on ONDC to fulfill orders.

. Look up ondc.org for details.

What is ONDC all about and how does it work?

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