T Koshy, the CEO of ONDC, shares insights into the scaling of the open network for digital commerce, the sustainability of discounts, and the long-term growth strategy. Discover how ONDC has expanded its reach, the addition of new categories, and the shift of control to merchants. Gain insights into the future plans of ONDC and the challenges faced in delivering a seamless user experience.
#1: ONDC’s Scale-Up Journey
T Koshy highlights the rapid growth of ONDC, which currently operates in over 240 cities with 47 network participants. The CEO shares that the network has witnessed a significant increase in daily transactions, scaling from 50 to 10,000-20,000 in the food and grocery space.
#2: Expansion to Other Categories and Expected Volumes
Learn about ONDC’s plan to enable domains such as fashion and electronics. As more merchants join the network, the CEO expects volumes in these categories to pick up in the coming months. Early adopters like Snapdeal, Boat, and Sangeetha Mobiles are already on board, and additional sellers are expected to join due to the benefits they perceive. The platform-centric model is replaced by a merchant-centric approach, allowing sellers to present their own terms and conditions.
#3: Sustainability of Discounts in ONDC
T Koshy shares his views on the sustainability of discounts in ONDC. While discounts have been utilized as incentives to drive trial orders and wider participation, the CEO believes that the network cannot scale up solely based on discounts. The intention is to discontinue discounts and incentives after a few months, as ONDC aims to create a democratic network with diverse sellers and specialized platforms.
#4: Long-Term Growth Strategy of ONDC
Discover ONDC’s long-term growth strategy as outlined by its CEO. One of the key advantages of ONDC is that sellers are not tied to a single platform, allowing for specialization and innovation. Different platforms joining the network will attract various sellers, leading to cost efficiencies and streamlined supply chains. Merchants appreciate the freedom and flexibility offered by ONDC, including access to their consumer data. Additionally, international brands with operations in India are expressing interest in joining ONDC, and integration with banks is in advanced stages.
#5: Addressing User Experience Challenges
Responding to complaints regarding poor user experience and slow deliveries, T Koshy explains that the buyer platform can refuse to take orders if the seller platform is not behaving properly. While the majority of food deliveries are completed within an hour, there have been occasional delays. All participants in the network are continuously refining their processes to improve user experience, driven by their incentive to do so.