India’s Open Network for Digital Commerce (ONDC), a digital public infrastructure, has extended an invitation to e-commerce giants such as Amazon and Flipkart to join its platform, according to T Koshi, the CEO of ONDC. Koshi expressed that these companies are welcome to become a part of the network and mentioned that they have shown interest and made statements regarding their participation. However, they have not integrated their operations with ONDC yet, as they may be waiting to feel comfortable with their current scale and size of operations.
The Purpose of ONDC
Established by the Department for Promotion of Industry and Internal Trade (DPIIT), the non-profit company ONDC aims to promote open e-commerce. It focuses on developing open source networks that facilitate the exchange of goods and services on the internet. Importantly, ONDC is independent of any specific platform, allowing participants to engage in digital transactions without being limited to a single application or platform.
The Potential of India’s Digital Public Goods Infrastructure
India has made significant advancements in its digital public goods infrastructure, which has the potential to impact lives globally. The Open Network for Digital Commerce is the latest addition to this infrastructure, although it is still in its early stages of adoption. India has been actively building a public digital infrastructure to serve its citizens, exemplified by initiatives such as UPI, Jan Dhan, Aadhar, and CoWin.
Rapid Growth and Benefits of ONDC
Since its launch in January, ONDC has experienced exponential growth. Initially, the platform recorded only 40 transactions per day. However, it has now surpassed 30,000 transactions for goods and 50,000 transactions for services. This growth has attracted interest from both major players and small merchants in the e-commerce industry.
By utilizing ONDC, participants have greater control over the terms and conditions of their transactions. Additionally, the network offers improved pricing and costing, resulting in better deals for users. As a result, special schemes and offers have been introduced to incentivize customers to utilize the open network for digital commerce. This trend is expected to continue in the upcoming months as vendors recognize the freedom and opportunities provided by this democratized platform.
In summary, India’s Open Network for Digital Commerce (ONDC) has invited prominent e-commerce companies like Amazon and Flipkart to join its platform. ONDC aims to promote open e-commerce by facilitating the exchange of goods and services on the internet through an independent network. India’s digital public goods infrastructure, which includes initiatives like UPI and Jan Dhan, has the potential to revolutionize the way people conduct transactions globally. Since its inception, ONDC has experienced rapid growth, attracting interest from major players and small merchants alike. The platform offers participants greater control over their transactions, improved pricing and costing, and special schemes to benefit customers. As vendors realize the advantages of this democratized platform, it is expected that more businesses will integrate with ONDC in the future.
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