ONDC's Bold Move to Revitalize Food Delivery Market

The Open Network for Digital Commerce (ONDC) is setting the stage for a significant policy shift by proposing a revival of its subsidy program. With an incentive pool of Rs 100–150 crore, the initiative aims to support food delivery partners on its platform, including notable names like Magicpin, Paytm, Ola Consumer, and Waayu.

Challenging the Giants: Zomato and Swiggy

In a market dominated by Zomato and Swiggy, restaurants are seeking alternatives due to high commission fees. ONDC, charging significantly lower commissions and offering direct customer data access, presents a viable option. The National Restaurant Association of India (NRAI) has already encouraged its members to join ONDC.

The Road Ahead for ONDC

Despite initial challenges, ONDC's entry into the food delivery space could potentially route 80–100 million orders through its platform. With the food delivery market expected to grow from $8 billion in 2023 to $17-21 billion by 2028, ONDC's subsidy revival could be a game-changer.

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