ONDC Expands to 236 Cities, Competes with Amazon and Walmart

ONDC (Open Network for Digital Commerce), India’s government-backed e-commerce initiative, has successfully expanded its operations to 236 cities, according to CEO T. Koshy. With this development, the initiative is poised to compete with global rivals Walmart and Amazon.

The ONDC was launched in March 2021 and aims to provide an open network for small and medium-sized enterprises to conduct e-commerce activities. This initiative is part of the Indian government’s larger digitalization plans and is focused on promoting transparency, reducing e-commerce costs, and empowering sellers.

Since its launch, the ONDC has been seen as a potential challenger to established e-commerce giants like Amazon and Walmart, who have long dominated India’s e-commerce space with their deep pockets and extensive networks. However, T. Koshy remains confident that the ONDC’s unique approach to e-commerce will enable it to carve out a dedicated niche in the Indian market.

The ONDC’s business model differs from those of Amazon and Walmart in several significant ways. Firstly, it aims to create a network of sellers and buyers that are connected via a decentralized payment system, enabling seamless transactions and eliminating middlemen. This allows for better transparency, reduced costs, and is seen as a more efficient way of conducting e-commerce transactions, especially for small and medium enterprises.

The ONDC is also looking to take advantage of the growing demand for locally produced goods, with a focus on offering customers access to locally sourced products. By doing so, it is helping to promote small businesses and local entrepreneurship.

T. Koshy also emphasized that the ONDC is focused on promoting a level playing field for sellers. By reducing entry barriers and providing a fair platform for sellers, the ONDC is working towards democratizing e-commerce. This is a key differentiator from Amazon and Walmart, who have faced criticism for favoring their own products or sellers with whom they have established relationships.

The ONDC’s expansion to 236 cities is seen as a significant milestone, enabling the initiative to reach almost half of India’s population. The initiative is also expected to create opportunities for small and medium enterprises to participate in e-commerce activities and leverage the benefits of the digital economy.

In conclusion, the ONDC is seen as a promising initiative that has the potential to revolutionize India’s e-commerce space. Its unique approach to e-commerce, focused on transparency, efficiency, and fairness, will enable it to compete with established giants like Amazon and Walmart and provide small and medium-sized enterprises with access to a level playing field. With the recent expansion to 236 cities, the ONDC is well-positioned to capitalize on India’s growing demand for e-commerce and digitalization, benefiting both buyers and sellers in the process.