I had been looking for something on ONDC for quite some time, it's surprising how little information is available in the public domain!
A few thoughts after reading this:
1. Seller Data will become Open Source: Does this mean Amazon/Flipkart seller data becomes accessible to everyone? Unlikely that they'll give up their prized data easily. Maybe they'll bifurcate the database to pre-ONDC and post-ONDC, possibly launch a new sub-brand just for ONDC
2. No Centralisation might lead to Quality Problems: This was my first thought as well, Flipkart/Amazon have solved significant operational challenges (ok, well maybe not Flipkart!) over the years, ONDC will face the same, and some even amplified, because of multiple nodes and levels of sellers involved. Could this be an opportunity for a business to help solve this? Is ONDC open to third party solutions?
3. 41% of ONDC is owned by 5 Indian Banks: Who owns the remaining 59%? Are the names of these private sector institutions not public? Raises some questions...
Overall great analysis, would love to see some business opportunities being discussed around ONDC.
For Amazon and Flipkart, no way they’ll open up their entire seller database. I’m interested to see what they’ll do - most likely the ONDC version will have lower prices (because of the 3% take rate) and more sellers but also worse support?
I think one of the biggest opportunities is in hyper local delivery in areas that are currently underserviced. If Kirana stores come online, you could have individual delivery services that dominate certain rural areas. I think on average, the best bootstrapped opportunities will be for the back end stuff that will open up cause you’ll have automatic customers. I would not start something on the front end cause you’ll have to spend a lot for customer acquisition.
Is it open for 3rd parties for customer service? I don’t know - I’ve not seen it in any of the documentation. Best would be to ask them directly. Let me know if you get answer cause I agree - it will be a much needed business!
Re: the rest of the ownership - pretty sure you can find it online somewhere. You’ll have to dig for it for sure - even getting that table with individual bank investments took some digging.
Great analysis and very in-depth!
I had been looking for something on ONDC for quite some time, it's surprising how little information is available in the public domain!
A few thoughts after reading this:
1. Seller Data will become Open Source: Does this mean Amazon/Flipkart seller data becomes accessible to everyone? Unlikely that they'll give up their prized data easily. Maybe they'll bifurcate the database to pre-ONDC and post-ONDC, possibly launch a new sub-brand just for ONDC
2. No Centralisation might lead to Quality Problems: This was my first thought as well, Flipkart/Amazon have solved significant operational challenges (ok, well maybe not Flipkart!) over the years, ONDC will face the same, and some even amplified, because of multiple nodes and levels of sellers involved. Could this be an opportunity for a business to help solve this? Is ONDC open to third party solutions?
3. 41% of ONDC is owned by 5 Indian Banks: Who owns the remaining 59%? Are the names of these private sector institutions not public? Raises some questions...
Overall great analysis, would love to see some business opportunities being discussed around ONDC.
Cheers!
For Amazon and Flipkart, no way they’ll open up their entire seller database. I’m interested to see what they’ll do - most likely the ONDC version will have lower prices (because of the 3% take rate) and more sellers but also worse support?
I think one of the biggest opportunities is in hyper local delivery in areas that are currently underserviced. If Kirana stores come online, you could have individual delivery services that dominate certain rural areas. I think on average, the best bootstrapped opportunities will be for the back end stuff that will open up cause you’ll have automatic customers. I would not start something on the front end cause you’ll have to spend a lot for customer acquisition.
Is it open for 3rd parties for customer service? I don’t know - I’ve not seen it in any of the documentation. Best would be to ask them directly. Let me know if you get answer cause I agree - it will be a much needed business!
Re: the rest of the ownership - pretty sure you can find it online somewhere. You’ll have to dig for it for sure - even getting that table with individual bank investments took some digging.
Thanks man!
Is it open for 3rd parties for customer service? I don’t know - I’ve not seen it in any of the documentation. Best would be to ask them directly. Let me know if you get answer cause I agree - it will be a much needed business! - Yes. You can read about it:_ https://www.moneycontrol.com/news/business/ondc-to-enlist-third-parties-for-online-resolution-of-customer-complaints-8779741.html
Thanks Monish, super useful!
We were wondering about this and seems like we missed it in our research.
Thanks for the answers! Much appreciated!!
Glad to discover this newsletter, keep it up