How will the open network for e-commerce work?


NEW DELHI: Government seeks to replicate the success of the UPI model by creating the Open Network for Digital Commerce (ONDC), in hopes of building a backbone that vendors and logistics service providers can connect to with buyers.
Positioned as a “network”, the idea is to allow consumers to connect and search for products or services that meet their needs. Based on their location, sellers will be listed with product details and price for buyers to choose from, sources familiar with the plan told TOI.
The proposed ONDC will be connected to payment gateways and, in case of specific requirements, the platform will also offer delivery and logistics service providers.

Government sources said the broad outlines of the model were in place and the advisory group, including Infosys Chairman Nandan Nilekani and National Health Authority CEO RS Sharma, among others, was being consulted to develop a platform. solid.
A first pilot project involving automatic rickshaws and taxis was carried out where taxi drivers and three-wheeler drivers were invited to register. Going forward, plans are underway to focus on kirana stores, delivery service providers and FMCG players for testing in Delhi, Bengaluru, Jaipur, Kochi and Varanasi. These pilots are expected over the next six months or so, sources said.
Officials have suggested that something like this has not been tried in other parts of the world. The Center has been trying for several months to launch a B2B and B2C transaction platform. The government is looking to change the rules of the game as it believes current platform-centric models require buyers and sellers to be on the same platform, focusing the market on a handful of players, said officials. sources, adding that sellers are also out of control. .
If the ONDC model works, it will emerge as a rival to Amazon and Flipkart, with officials hoping that, like the UPI boom, large private players will join them.
“The case of ONDC is similar to emails, where the sender and recipient don’t need to be on the same platform to exchange emails. Someone can be on Google, the other person can be on Yahoo, ”a source said.


Comments are closed.