ONDC witnesses 500X surge in daily transactions, claims 25,000 daily orders
- ByStartupStory | May 11, 2023
ONDC, a platform enabled by the government to facilitate digital commerce, has gained attention for offering significantly lower food prices compared to competitors like Swiggy and Zomato. The platform has reported a 500-fold increase in daily transactions, with orders increasing from 50 in January to 25,000 in the last week. ONDC started its pilot in April of last year and underwent beta testing in September 2022.
According to a statement from ONDC, the government-backed network enabler platform has experienced a significant surge in the number of retail merchants onboarded on its platform. From 800 retail merchants in January this year, ONDC’s retail merchant base has grown to 35,000, an impressive 4,275% increase in just five months. The platform has also increased its presence across the country, expanding from 85 cities at the start of the year to more than 230 cities presently.
ONDC has reported a significant surge in its daily rides between Kochi and Bengaluru, following the recent launch of its mobility services in the region. The two cities are now witnessing around 35,000 rides per day, indicating a substantial increase in demand for ONDC’s mobility offerings.
Since January, ONDC has seen an increase in the number of merchants joining the platform from different domains like fashion, beauty, personal care, electronics, and appliances. With over 600 merchants from these sectors, ONDC has completed over 1,300 transactions, mostly intercity and completed through Shiprocket, Delhivery, and Loadshare.
The government-backed network enabler platform, ONDC, has reported an increase in the number of network participants, with 26 in January rising to 46 today. Participants include PhonePe’s Pincode and Airpay on the buyer side, and ITC, HUL, and several startups on the seller front. Moreover, ONDC’s recent announcement of substantially lower food prices compared to Swiggy and Zomato has garnered significant attention from experts, with some predicting the end of the duopoly enjoyed by the two food delivery aggregators.
Motilal Oswal Securities stated that ONDC is not an immediate threat to Zomato, according to a statement made just yesterday. The brokerage firm did not view direct ordering as a significant concern for the industry. However, if ONDC scales up meaningfully across categories, it could pose a potential threat to Zomato, allowing it to achieve greater efficiency compared to the walled gardens. The brokerage firm also warned that if Zomato’s efforts to rationalize its take rate are hampered, the company’s profitability goals may be further delayed.
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