Indian Economy News

Dunzo, PhonePe among 24 e-commerce firms joining India's open network

After the launch of the Open Network for Digital Commerce (ONDC) pilot, as many as two dozen companies, including Flipkart-backed logistics provider Ekart Logistics, hyperlocal quick commerce company Dunzo, and digital payments company PhonePe, were in the process of integrating with the network. They stated that real-time transactions in retail and food delivery have begun in various places.

On April 29, the ambitious ONDC design was put into action on a small scale in Delhi, Bhopal, Bengaluru, Coimbatore, and Shillong. The goal of the exercise is to strengthen processes before an official launch. Given the financial pitch offered by ONDC, government authorities think that most e-commerce platforms will eventually use the network. ONDC will operate on the open network principle, which states that a buyer and a seller do not have to be on the same platform to do business with one other. Rather, the network will allow people to be digitally visible and transact regardless of platform or application. Hopefully, this will result in the rapid digitalization of small enterprises and customers over time. The open network concept will not be limited to the retail sector, but will also be applied to mobility, food delivery, and travel, among other things.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.