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Journalism of Courage
Zomato and Swiggy enjoy a duopoly when it comes to online food delivery services in India. While these platforms deliver food from the restaurant to your home in a short time, they are also criticised for the “middleman cut”, which further increases the price.
Open Network for Digital Commerce or ONDC is all set to change this by cutting down the middleman between the business and the consumer. Currently, the service is live in select cities like Bengaluru, and ONDC is said to benefit both businesses and customers at the same time, albeit at the cost of your personal information being shared.
Here is an in-depth analysis of ONDC and how it is different from conventional food or grocery delivery services.
ONDC is not an app or service but a platform designed and developed by the Government. This service helps to connect or digitalise businesses with customers.
Currently, there are partners like Paytm, Meesho, Magicpin, Mystore, Craftsvilla, and Spice Money, which act as online storefronts, allowing users to order food or any other product from a business listed on the ONDC platform.
When you order food or a product from the ONDC platform via an app like Paytm, the platform takes a small commission, and then the order is passed on to the business. Similarly, the hotel or the business will take care of the order, and Paytm will also share all user details with the business, which is not the case with Zomato or Swiggy.
Brands and businesses need to set up their service on ONDC, which will then be visible to all customers across the country. Do note that this service is not limited to food or grocery delivery; it can also be used for other services like e-commerce and could even compete against brands like Flipkart and Amazon.
Currently, Paytm offers various ONDC services like food, grocery, and home decor.
When we order food via Zomato or Swiggy or groceries via Amazon or Paytm, these platforms will have their own delivery executives. However, when we order a product from ONDC, the restaurant has to send its own runner, which has some challenges.
If the same restaurant receives a few orders at once, it might not be able to serve all of them. Similarly, unlike Zomato or Swiggy, ONDC does not provide details like the estimated time of delivery. According to posts on social media platforms, ONDC seems to be cheaper than Swiggy and Zomato when it comes to food delivery.
ONDC is in a nascent state, and it is likely to get better in the coming days.
