SUMMARY
I would tell Koshy (ONDC chief) to exclude those e-commerce platforms which are not coming to the network with their main platforms: Piyush Goyal
According to the minister, such companies are not giving your consumer base the benefit of choice of buying from any of the sellers
Consulting firm McKinsey said in a report that ONDC has the potential to increase India’s digital consumption by 5X to around $340 Bn by 2030
While the government is inviting ecommerce firms to join Open Network for Digital Commerce (ONDC), it also wants the main platform of ecommerce companies to join the network instead of building an ONDC specific app.
“I would tell Koshy (ONDC chief) to exclude those e-commerce platforms which are not coming to the network with their main platforms. Some are building ONDC-specific platforms. That’s not our aim,” Commerce and Industry Minister Piyush Goyal said, Moneycontrol reported.
According to the minister, the companies which are building separate apps to join the ONDC, are taking the benefit of ONDC by using the sellers through the network. But these companies are not giving consumers the benefits of choices for buying from any of the sellers.
The statement comes a few days after fintech giant PhonePe launched a consumer-centric shopping app Pincode, which is built on the ONDC platform. The app, which will focus on hyperlocal commerce, is downloadable from Google Play and App store. At present, it is only available in Bengaluru city and will soon be launched in other cities.
The minister also said that ONDC does not threaten big commerce companies, but rather opens doors of opportunities. He also reportedly said that the companies which will not join ONDC will be left behind.
Meanwhile, consulting firm McKinsey said in a report that ONDC has the potential to increase India’s digital consumption by 5X to around $340 Bn by 2030.
Besides propelling the digital products and services consumption from $60-$70 Bn in FY22 to $320-$340 Bn by FY30, the network will also help increase the number of digital transacting consumers by 3-4X from 165-190 Mn to 450-500 Mn users during the same period.
Since its launch last year, companies across sectors have joined the ONDC bandwagon. Google-backed proptech unicorn NoBroker is likely to soon join the network, Inc42 exclusively reported. Axis Bank is also reportedly planning to launch a consumer-facing ecommerce platform on the network.
Earlier this year, Amazon also announced that it would integrate its SmartCommerce services and logistics network with the ONDC. The network has also onboarded Bengaluru-based auto booking app Namma Yatri. ONDC has already onboarded various logistics players such as Shiprocket, Delhivery, Shadowfax, Loadshare, and Reliance-backed Grab.
