ONDC reduces incentives as daily transactions go up, does it mean cheap food delivery days are over?

By Abhik SenguptaThe government-backed Open Network for Digital Commerce (ONDC) has been gaining popularity as a cheaper alternative to Zomato and Swiggy. The platform does not have a standalone app but works via apps like Paytm, Magicpin, and others. As it has gained popularity, daily transactions have also gone up. This has led to a reduction in incentives, which has also translated into relatively pricier food orders. Does this mean the era of cheap food delivery is over? Here is what we know.

In response to Business Today, ONDC said, “Stimulus was first conceived when the network was clocking less than 100 orders a day.” As transactions have increased, clocking “consistently over 10,000” orders per day, the platform has “undergone adjustments because of the response received.”

ONDC did not specifically clarify whether food orders will get pricier or at least on par with Zomato or Swiggy. It notes, “Interoperable unbundled e-commerce is not just viable but also can continue the momentum beyond the stimulus.”

For reference, Interoperable unbundled e-commerce means different online platforms can work together smoothly, letting customers use various features from multiple e-commerce sites easily. Since it is less hassle from the seller side to register with a dedicated app, they can offer incentives to customers.

ONDC further adds that a major focus is on improving activity and driving awareness and transactions to build confidence and acceptance regarding unbundled interoperable ways of delivering e-commerce. The report notes, “A stimulus such as this was designed for limited time and scale and is constantly reviewed. The latest adjustments are consistent with those principles.”

Meanwhile, ONDC has also notified sellers that incentives would be capped at Rs 2,25,000 per seller-side app daily and Rs 3,750 per seller each day. It means customers can enjoy cheap food deliveries for a while, but prices may continue to go up.

India Today Tech also used ONDC, Zomato, and Swiggy to check the difference. In one instance, the ONDC offer a competitive price. However, cheap prices were not consistent.

If you want to use ONDC, the platform is currently available in select cities, including Delhi and Bengaluru. It is also likely that areas in the cities are not fully covered. You can use it for free via apps, including Paytm, Phone, Meesho, and more. If you’re using Paytm, simply search “ONDC” in the search bar or scroll to the very bottom of the home screen.

The ONDC network is still in its initial stage and is likely to get better in the coming days.