ONDC Gets Another Boost As McDonald’s North & East Joins The Network

Fast food chain McDonald’s India North & East has joined the government-backed open network for digital commerce (ONDC) network to boost its accessibility for existing and new customers.

McDonald’s India North and East products will now be available across ONDC buyers’ applications with exclusive ala carte and meal options. 

Rajeev Ranjan, managing director, of McDonald’s India North and East, said, “This is a significant step in our journey of making the McDonald’s experience more accessible to existing and new customers.”

“This development underscores the growing acceptance and trust that established brands like McDonald’s have in ONDC’s open, inclusive, and interoperable Network. As more and more brands join us, it amplifies our commitment to empower businesses, foster healthy competition, and provide consumers with unparalleled choice and convenience,” said T Koshy, MD and CEO, ONDC.

McDonald’s employs more than 6,000 employees directly and has around 200 outlets throughout North and East India. The fast food chain operates through a range of formats and brand extensions, including freestanding restaurants, drive-thrus, restaurants open round-the-clock and McDelivery, for the convenience and experience of its customers.

This comes two months after McDonald’s rival Domino Pizza joined ONDC in January.

The ONDC platform, backed by the Department for Promotion of Industry and Internal Trade (DPIIT), was launched in the latter half of 2022. It is an open network aimed at unbundling the existing closed network of digital commerce and enabling small businesses to participate in the space.

It is pertinent to note that ONDC is emerging as a relatively cheaper option for food delivery than Swiggy and Zomato. While commissions charged to restaurants by the duo could range between 20% and 30%, the same on ONDC is around the single-digit range.

However, several brokerage firms have pointed out that the ONDC’s price incentive offering is incurred through network-sponsored discounts, which seems unsustainable in the long run.

The likes of Delhivery, Paytm, Phonepe, Uber, IDFC Bank, Kotak, Shiprocket, Dunzo, Tata Neu and Others, have integrated some of their services with the ONDC.

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