Arrival of ONDC in Bengaluru: We are often advised on not going too hard on our rivals. This is because in a democracy, tables can turn anytime. Probably, the American multinational giant Amazon did not learn this lesson. It abused its position in such a reckless manner that an alternate platform to save others became necessary. Government’s ONDC is doing that job.
ONDC tested in Bengaluru
Beta testing of Modi government’s flagship, Open Network for Digital Commerce (ONDC) has begun in Bengaluru. On the first day, houses and shops existing in 16 pin code locations were taken on board. The beta testing is being done only in two categories namely food and groceries. More than 200 grocery stores and restaurants were integrated into the network on the very first day of trial.
Paytm, MyStore and Spice Money worked as buyer side apps on these platforms. They were assisted by companies such as GoFrugal and LoadShare. On the very first day, LoadShare, the logistic partner, delivered 100 orders, while other orders were taken care of by Dunzo.
Announcing the arrival of ONDC in Bengaluru, Union Minister Piyush Goyal tweeted, “Bengaluru consumers to get a whole new shopping experience ! 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.”
Bengaluru consumers to get a whole new shopping experience !
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
— Piyush Goyal (मोदी का परिवार) (@PiyushGoyal) September 29, 2022
The democratisation of e-commerce
ONDC is one of the most democratic moves of the 21st century. ONDC reimagines digital commerce by segregating different steps involved in purchase and sale of goods online. For instance, currently, the e-commerce players like Amazon or Flipkart are responsible for end-to-end services apart from selling the products and the domestic e-commerce players who are allowed to operate in an inventory model are responsible for the whole operation.
Under the ONDC, the different steps like delivery, packaging, return and many other steps that are involved will have different players who will perform their tasks. This will truly democratise digital commerce because the players involved will work as service or product providers, not a platform.
Read more: E-Commerce is past, Quick Commerce is the future
As per the government release, Open Network for Digital Commerce (ONDC) aims at promoting open networks developed on open-sourced methodology, using open specifications and open network protocols, independent on any specific platform. ONDC is expected to digitise the entire value chain, standardise operations, promote inclusion of suppliers, derive efficiency in logistics and enhance value for consumers.
Currently, the project is in various phases of testing in cities such as Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore and 75 others. By the end of this year, the project is expected to reach 100 cities, 30 million sellers and 10 million vendors. This will be the beginning of the end of the domination of companies like Amazon and Flipkart, and also to their treacherous business practices.
The need for ONDC
When the e-commerce sector arrived on to the feild, fear was being expressed about the possible extinction of brick-and-mortar stores from Indian cities. On the other hand, experts who were probably under the influence of these companies said that ultimately it will be beneficial for kirana shops. According to them, companies like Amazon and Flipkart would pick up products from brick-and-mortar shops and deliver them to customers.
But reality turned out to be totally different. A lot of these companies indulged in unfair business practices. In a detailed investigation by Reuters, it was revealed that the Indian subsidiary of Amazon provided preferential treatments to companies on its platform. Based on internal amazon documents, the report detailed how the company time and again floundered the rules made to protect small businesses of India.
To put it simply, the government’s rules meant that e-commerce giants could sell products from independent inventories only. But the investigation revealed that the e-commerce giant had infused money in some of the biggest sellers on its platform. It also promoted their products to prosper more profits.
Read more: Amazon and Flipkart are in for a big shock; Government is all set to revitalize the local stores
Flipkart-Walmart deal was instant cause for ONDC
Similarly, Walmart also became a majority shareholder in Flipkart, putting an end to the speculations that just because it was being run by Indian owners, the company would ultimately turn out to be beneficial for Indian retailers.
These two companies had become so dominant that there was virtually no space left for their e-commerce competitors, let alone small shop owners. Now, ONDC will put an end to this monopoly.
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