Zomato VS ONDC

Published : 11 May 2023

What is ONDC? 

The Open Network for Digital Commerce (ONDC) is an open protocol-based, agnostic platform. In segments like mobility, grocery, food order and delivery, hotel booking, and travel, the ONDC will enable local commerce.

Swiggy and Zomato Business Model

● A significant intermediation fee of 25% to 30% is levied by Swiggy and Zomato on the vendor. ● As a result, the vendor is forced to raise prices, which causes them to lose business. ● Additionally, their business model becomes overly reliant on companies like Swiggy and Zomato.

How ONDC will Disrupt the Industry? 

● The ONDC is just a platform that the government created; it is not an application or service. ● Customers can place orders for food or any other item from a company listed on the ONDC platform.

How ONDC will Benefit Customers? 

● For instance, the ONDC platform will only keep a very small commission when you order food or a product through an app like Paytm. The service provider is then given this order to complete the service. ● While Zomato and Swiggy currently do not share user information with the company, the Paytm platform under ONDC will. ● You can pass on significant cost savings to the customers if you use the ONDC platform.

Limitations with ONDC 

● The restaurant participating in ONDC must provide its own delivery men and runners for this job. ● You cannot quickly make a decision using ONDC's comparative analysis of various restaurants. ● ONDC won't give you information about delivery dates, expected wait times, etc.