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Will ONDC drive Swiggy and Zomato Out of Business?

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The food delivery industry in India has undergone a massive transformation in recent years. With the rise of food delivery aggregators such as Swiggy and Zomato, ordering food online has become easier than ever. However, the high commission fees charged by these aggregators have been a significant pain point for restaurants.

Moreover, these fees have also increased the overall customer cost, making it difficult for both parties to sustain their businesses. Here is where ONDC (Open Network for Digital Commerce) comes in – an ecosystem which has the potential to revolutionize the food delivery in India.

What is ONDC?

ONDC is a digital commerce ecosystem that aims to revolutionize the way India’s e-commerce industry operates. It’s an initiative of the Indian Government which aims to promote open networks that will help buyers and sellers to connect. In food delivery industry, ONDC’s primary focus will be to reduce the high commission fees charged by traditional food delivery aggregators like Swiggy and Zomato. This will make ONDC an attractive option for restaurants.

ONDC is basically UPI for ecommerce. This protocol has potential to transform the Indian ecom just like how UPI did to our payment system.

ONDC: A Sustainable Ecosystem Revolutionizing Food Delivery in India

Low Commission Fees

ne of the biggest advantages of ONDC is its low commission fees. While traditional aggregators charge between 18-24% commission, ONDC charges only 2-4%. This can be achieved as the protocol allows customers and sellers to connect directly via a 3rd party platform like Paytm. This means that restaurants can offer better pricing to customers, resulting in increased sales and profits.

Additionally, since ONDC’s commission fees are low, restaurants can pass on the savings to customers, resulting in lower prices for food orders creating a win-win situation for both restaurants and customers. Moreover, ONDC is not cashback or discount-driven, which means that the ecosystem is designed to be sustainable in the long run. This model ensures that the entire ecosystem thrives and benefits everyone involved.

 

Pricing: A Major Advantage for Customers

ONDC

One of the most significant advantages of ONDC over traditional aggregators is the pricing offered to customers. ONDC will enable affordable pricing, which is significantly lower than the pricing offered by Swiggy and Zomato. For example, a McDonald’s burger costs ₹282.5 on Swiggy and Zomato, while the same burger costs only ₹109.4 on ONDC.

This means that customers can save over 60% on their food orders by using ONDC instead of traditional aggregators.

ONDC's A Unique model by Indian Government

ONDC is an ecosystem that currently is in beta stage. For now, this ecosystem is available in selected cities only. Currently, customers can use Paytm and a few other integrated apps to access ONDC. Unlike other aggregators, ONDC has no separate app available on the app store. Instead, it is an ecosystem that is integrated with other platforms.

ONDC: The Biggest Threat to Traditional Aggregators

ONDC is quickly gaining popularity in India and is posing a significant threat to traditional aggregators such as Swiggy and Zomato. With its sustainable ecosystem, low commission fees, and affordable pricing, ONDC is changing the game in the food delivery industry.

The Future of ONDC

Apart from food ordering, ONDC is expanding into other categories, making it a one-stop-shop for all kinds of services. With its focus on innovation, sustainability, and affordability, ONDC is poised to become a significant player in India’s e-commerce industry. This is a UPI moment for India’s e-commerce, and ONDC is leading the way with its innovative approach.

Summary

ONDC is a game-changer in the food delivery industry in India.ONDC is quickly gaining popularity among restaurants and customers with its sustainable ecosystem, low commission fees, and affordable pricing. Its unique business model enables this protocol to disrupt the traditional aggregator space, and it is poised to become the biggest threat to traditional aggregators such as Swiggy and Zomato.

 As ONDC expands into other categories, it is set to become a one-stop shop for all kinds of services. This is the UPI moment for India’s e-commerce industry, and ONDC is leading the charge.

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