Price war looms as ONDC registers rapid growth, set to clock US$ 100 Bn by 2024

New Delhi, May 17 (KNN) The Open Network for Digital Commerce (ONDC) can trigger a price war in the Indian e-commerce market as the platform witnesses rapid increase in the number of its users, according to a report by GlobalData, a data and analytics company.

The report points out that ONDC platform is set to cross the USD100 billion milestone by 2024.

It further states that while ONDC has received a large number of users since its launch in 2022, it has a long way to go before it can match the technological and service capabilities of companies like Amazon, Flipkart, Swiggy, Zomato, and others.

The ONDC is the latest initiative of the Indian government to build a digital economy after BHIM unified payment interface and the RuPay credit card. The government launched the ONDC as an open online sales platform for large, medium, and small-scale businesses.

Bobby Verghese, Consumer Analyst, GlobalData, said, "As it operates as a direct-to-consumer sales platform for manufacturers, traders, and foodservice operators, the ONDC can accelerate the digitalisation of India’s huge unorganised sector."

Since the beta version of the website was launched in September 2022, the ONDC has been gradually expanding its network of vendors and users.

It operates as a website or application that can be integrated into other online shopping or food-ordering apps, such as Paytm, PhonePe, Magicpin, and Meesho.

Francis Gabriel Godad, Consumer Business Development Manager, GlobalData India, stated that as the platform’s user base acquires critical mass, it can serve as a benchmark for price discovery for both vendors and consumers, instead of allowing the leading online retailers and food aggregators to dictate prices.

He further added that ONDC can become a disruptor in the Indian online food ordering and delivery market, where food service operators and food aggregators are tussling over service charges.  (KNN Bureau)