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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Quick takeaways
- ONDC's initial promise to disrupt the food delivery market has faltered significantly due to a substantial decline in user engagement and orders.
- Challenges in customer satisfaction, interface functionality, and financial sustainability have hindered ONDC's ability to compete against established delivery giants.
Deep dives
Challenges Faced by ONDC in Food Delivery
The Open Network for Digital Commerce (ONDC) has struggled to make a significant impact in the food delivery market, which is dominated by established players like Zomato and Swiggy. Initial promise suggested ONDC could provide lower commissions and better margins for restaurants by connecting buyers and sellers through a unified platform. However, a decline in monthly retail orders from 65 lakh to 46 lakh between late 2024 and early 2025 signals a failure to meet expectations. Additionally, user feedback indicates dissatisfaction with the platform's clunky interface and inadequate customer service, making it difficult for ONDC to attract and retain users in a competitive environment filled with better-established alternatives.
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