InvestorQ : Can you tell me about this new idea of ONDC that the government has launched in ecommerce? Is the government also competing with Amazon and Flipkart?
Lavanya Subramanian made post

Can you tell me about this new idea of ONDC that the government has launched in ecommerce? Is the government also competing with Amazon and Flipkart?

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Anamika Sodhani answered.
2 weeks ago
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Here are some key aspects you need to know about the ONDC platform launched by the government. Let me put it this way. When the government launched UPI services, it did not compete with the banks. The idea was to provide a better experience for the customers. That is the purpose in ONDC also. Here is what you must know about ONDC.

· It is not an ecommerce website, but ONDC is an agnostic platform wherein investors can log in and put trades on the platform of their choice. The control of the transaction shifts from the ecommerce website to the customer.

· This is response to objections about several complaints Amazon and Flipkart trying to dominate the Indian digital commerce space by using tactics that were not always favouring a competitive market. The ONDC will address this duopoly issue.

· ONDC allows both the buyers and sellers to transact online through a government sponsored platform. This will be a major boost to the small traders looking for a digital identity and not wanting to become a virtual subsidiary of Amazon and Flipkart.

· Some of the allegations against Flipkart and Amazon include predatory pricing, favours granted to select large sellers, flash sale at discounts etc. They were distorting the competitive spirit of ecommerce platforms with their clout.

· Incidentally, the ONDC project is being driven by Nandan Nilekani. Apart from being the former CEO of Infosys, Nilekani was also the brain behind the launch of the Aadhar Identity System in India about 10 years back.

· The idea behind ONDC is to empower millions of small traders and MSMEs to create digital identities to boost their sales and also transact on the internet platform without worrying about service provider and principal pressures.

· One Indian analogy is UPI and the RuPay system in India. Both are alternatives to existing franchises and have been huge successes in India. Now, ONDC will have to pick up, and be truly meaningful.

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