2023-06-15 17:10:26
#Important_notes_ssb_Lecturette #GD_Material
ONDC and It's Potential [1/2]✓The government’s efforts to use technology to make e-commerce more competitive are beginning to show up in food delivery services.
✓Customers are reporting noticeable price differences in orders placed on online apps using the Open Network for Digital Commerce (ONDC), which creates a network of interconnected e-marketplaces that makes it easier for small store-owners to tap demand online.
✓It could be a game-changer on the lines of the Unified Payments Interface (UPI), the infrastructure on which digital transactions are growing in this country exponentially.
What is ONDC? About:
✓It was launched in late 2021 under the Department for Promotion of Industry and Internal Trade (DPIIT) by the Ministry of Commerce as part of the Digital India push.
✓ONDC works as a network of interconnected e-marketplaces through which sellers, including brands, can list and sell their products directly to customers bypassing any middlemen or intermediaries.
✓Along with food delivery, ONDC also offers delivery services for groceries, home decor, cleaning essentials, and other products.
Objectives:
✓Democratisation and decentralization of e-Commerce
Inclusivity and access for sellers, especially small and medium enterprises as well as local businesses
Increased choices and independency for consumers
Making goods and services cheaper
Working Mechanism:
✓ONDC functions on the basis of an open network where it will not be a single platform similar to Amazon or Flipkart but rather in the form of a gateway where buyers and sellers across different platforms will be able to connect.
What are the Potential Advantages of ONDC? Increased Transparency:
✓ONDC can provide greater transparency by making government data more accessible to the public.This can help increase trust and accountability.
Increased Customer Choice:
✓ONDC has the potential to dilute market concentration by increased consumer choice and lower entry barriers.
Innovation:
✓ONDC can spur innovation by providing entrepreneurs and researchers with access to government data.
✓This can lead to the development of new products and services that benefit society.
Cost Savings:
✓ONDC can save money by reducing duplication of effort and enabling more efficient use of resources.
✓Platform fees for food delivery using ONDC are being reported at a fifth of those charged by the market leaders. This is a considerable reduction in the cost of intermediation.
Protecting the Consumers’ Interest:
✓By breaking the hegemony of existing e-commerce, ONDC can bring huge benefits to consumers.
Level Playing Field:
✓ONDC is keen to level the playing field for e-commerce operators and widen the digital market access for Micro, Small and Medium Enterprises (MSMEs) and small traders in the country.
Neutral and Regulated Platform:
✓ONDC aims at fostering open networks developed on open-sourced methodology, using open specifications and network protocols, and independent of any specific platform.
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1.2K viewsAnkit, 14:10
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