Finshots Daily Has the ONDC experiment failed?
May 5, 2025
The discussion dives into the inception of the Open Network for Digital Commerce and the significant hurdles it faces in the food delivery sector. It contrasts these struggles with successful mobility services, shedding light on user experience and fierce competition. Key insights reveal why ONDC has yet to gain traction in the market, highlighting the essential improvements needed to reshape its offerings and fulfill the ambitious vision it originally promised.
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ONDC's Network Model Explained
- ONDC is a digital network connecting sellers and buyers, not a single app to download and browse.
- It aims to disrupt food delivery giants by enabling cross-platform restaurant listings without exclusivity.
Retail Struggles, Mobility Gains
- ONDC's retail orders dropped sharply from 65 lakh to 46 lakh monthly, losing market share to mobility and logistics.
- Retail's complexity challenges ONDC; simpler mobility services fit its model better, boosting those sectors.
Funding and Subsidy Challenges
- ONDC competes with venture-capital-backed giants with deep pockets, unlike ONDC's public sector backing focused on prudence.
- Tightened subsidies cut discounts and incentives, hurting ONDC's ability to attract users and sellers.