Will ONDC impact Swiggy and Zomato and online food delivery? 2023

Who do you order meals from at 2 am? Swiggy and Zomato are synonymous with late-night hunger. ONDC, a new online food delivery service, is gaining popularity. ONDC, a government-backed portal, will fight Swiggy and Zomato.

What’s ONDC?

Open Network for Digital Commerce (ONDC). The beta platform is available in 180 cities. The network of small and major e-commerce firms aims to challenge Amazon and Flipkart in India. “Sell on ONDC/Create a Seller Experience”, “Create a Buyer Experience”, “Provide Software as Service”, “Provide Other Services”, and “Buy on ONDC” are some of ONDC’s offerings.

Customers may order meals using partner applications like Paytm and Magicpin. The site distributes groceries, home décor, cleaning supplies, and cuisine.

ONDC’s major goal is to drastically enhance e-commerce penetration by enabling population-scale inclusion of all types and sizes of vendors, according to a press statement. “By facilitating scalable and cost-effective e-commerce through the open protocol, ONDC will empower startups to grow collaboratively,”

ONDC added. With 10,000 daily orders, the site is popular. As ONDC adds clients, Infosys cofounder and ONDC advisory council member Nandan Nilekani believes it might disrupt not only food delivery but all e-commerce in India.

Restaurants are also excited. “ONDC will change everything. Since it connects companies and consumers directly, eateries like ours will no longer pay exorbitant fees. The direct link will also make it easier for restaurants and customers to resolve food complaints and delivery issues as the middleman chains will be eliminated.

“It will mainly benefit restaurants like us who are running a self-owned fleet as we will be able to make a good use of our fleet to serve customers over the ONDC platform,” says Debaditya Choudhary, managing director, Chowman chain of eateries. 29 Chowman stores in Kolkata, Bengaluru, and Delhi NCR will join the platform.

ONDC ordering: how?

Visit the ONDC website and click on Shop on ONDC. Paytm, Mystore, Pincode, and Magicpin will appear next. Click on the partner app and choose food and groceries online. Address, order, and pay online.

You may also search for ONDC on Paytm. Order from many retailers and eateries. Select the meal, enter the location, and pay online. Track the order’s shipping status.

ONDC or Zomato/Swiggy?

ONDC’s promise of cheaper food has shaken the business. Screenshots of food ordered from Swiggy, Zomato, and ONDC show pricing differences of up to 60%. So far! It’s cheaper than Swiggy and Zomato. Sudha Iyer of Bengaluru says the app is simple and the food arrives on time.

What makes ONDC meals cheaper than Swiggy and Zomato? ONDC costs eateries 2-4 percent, whereas Swiggy and Zomato charge 25-30%. Thus, ONDC orders benefit restaurants and consumers due to the decreased commission. When ordering, ONDC gives a Rs 50 discount. Industry analysts warn against celebrating yet.

“The platform will provide limited support for a period of time to the network participants to give a jumpstart to the network,” said ONDC CEO T Koshy. Discounting will be a short-term technique to get people hooked on the system. ONDC is privately held and has raised around Rs 180 crore from State Bank of India, HDFC Bank, Kotak Mahindra Bank, BSE Investments, and NSDL. They answer to investors. After seeing daily transactions rise from 100 to 10,000, the site changed its discounting approach and introduced T&C.

Paytm limits Rs 50 discounts to 2,000 per day. You won’t get your order if it’s 2,001 for the day. Once a restaurant reaches Rs 3,750 in daily deliveries, the Rs 75 delivery bonus would be limited. Delivery fees appear after that. Thus, ONDC prices may rise as substantial discounts fade.

Industry analysts believe Swiggy and Zomato are still viable. While ONDC is still young, the other two online food titans have created a solid network and dedicated clients. ONDC orders have also been incorrect and late. Since this experience is separated among various organizations, there is no customer support agent to link everything. Zomato and Swiggy control the entire experience, giving them an edge.

Will ONDC revolutionize Indian food delivery? Can it upend internet meal delivery? We’ll see. Like UPI, this food tech platform is disrupting e-commerce.

Deliver goods

Waayu, Mumbai hotels’ meal delivery platform, is 15–20% cheaper than other aggregators. Tech entrepreneurs Anirudha Kotgire and Mandar Lande created Waayu with help from Mumbai-based Indian Hotel and Restaurant Association (AHAR) and other industry groups.

The SaaS platform links clients to over 1,000 Mumbai eateries, including Bhagat Tarachand, Mahesh Lunch Home, Banana Leaf, Shiv Sagar, Guru Kripa, Kirti Mahal, Persian Darbar, and Ladu Samrat. The meal delivery app addresses restaurant and customer complaints about online food delivery services, such as exorbitant commissions, unfair rankings, biased reviews, and poor quality and support.

Hi, I’m Sanjh

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