The Ministry of Commerce and Industry said on Friday that several more applications will join the Open Network for Digital Commerce (ONDC) in the coming weeks to expand both buyers and sellers who can participate in the platform.
ONDC – the ministry’s initiative to help small retailers and reduce the dominance of e-commerce giants – opened to the public in parts of Bengaluru from Friday as part of its beta testing process.
“ONDC is a government startup. We are now in the process of validating some processes and technologies. Another 20 apps will come this week,” Department of Industries and Internal Trade (DPIIT) Additional Secretary Anil Aggarwal told reporters. .
Initially, consumers in Bengaluru can place their orders in two domains – grocery and restaurants – through shopper apps participating in the ONDC network.
Currently, Mystore, Paytm and Spicemoney are available as buyer apps.
Consumers in the city can buy grocery products or order food from stores and restaurants enabled through seller apps – Bizom, Digiit, e-Samudaay, eVitalrx, Go Frugal, Growth Falcons, Innobits Mystore, nStore, SellerApp, Ushop and Uengage.
Dunzo, Loadshare and Shiprocket will provide logistics services and Protean eGov Technologies Ltd will provide gateway services.
“HDFC Bank, IDFC Bank, Kotak Bank and eKart are in advanced stages of engagement and are expected to go live soon,” he said.
ONDC’s beta testing in Bengaluru is a major first step in implementing a network approach to e-commerce as an alternative to a platform centric approach.
ONDC, the ministry launched the pilot phase of the UPI-type protocol in five cities – Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore – in April.
To build trust between consumers, vendors and network participants (buyer apps, seller apps and gateways) in an open network, ONDC consulted with existing ecosystem experts and examined best practices to adopt and develop best approaches to build trust in an unbundled decentralized network. .
A detailed explanation in this regard is available in the advisory made available to the public on the official social media handles of DPIIT, ONDC and on their website.
As many as 20 institutions of national repute have confirmed investments of Rs. 255 crore in ONDC. Lenders such as State Bank of India (SBI), UCO Bank, HDFC Bank, ICICI Bank and Bank of Baroda have already invested.
The initiative is aimed at curbing the dominance of two large multinational e-commerce companies that control more than half of the country’s e-commerce trade, limiting market access and favoring certain sellers and reducing suppliers’ margins.
ONDC is a set of standards for voluntary adoption by vendors or logistics providers or payment gateways.
ONDC received its certificate of incorporation as a private sector led non-profit company on 31 December 2021.
Through this platform, consumers can search for any vendor, product or service using any ONDC-compatible application or platform, thereby increasing freedom of choice for consumers.
