Your online food ordering habit may well change in the coming days, with the central government-backed Open Network for Digital Commerce (ONDC) finding takers amongst Goan restaurant owners as well as NRAI Goa Chapter.
ONDC, a communication protocol that allows Buyer Network Participants and Seller Network Participants to interact with each other, comes with a big plus-side for restaurateurs, cutting down their costs incurred on the hefty commissions charged by popular food aggregating apps.
Food aggregators charge commissions as high as 30-35 percent. ONDC commissions range between two and five per cent. Plus there will be a delivery fee that the restaurant or consumer pays to last mile service providers or logistics service providers. So, it ends up being cheaper than the huge commissions charged by food aggregators
--Amey Naik, Joint Secretary, National Restaurants Association of India (Goa Chapter)
The network is still in a test phase across India and is expected to be operational soon.
However, restaurateurs continue to root for greater awareness and education among small businesses to fully leverage the benefits of this revolutionary network, which has potential to become a dominant force in the food delivery market, challenging the reign of the established food aggregators.
ONDC reduces reliance on food delivery aggregators, giving restaurants better visibility and the ability to reach a larger customer base. Furthermore, ONDC provides restaurants with a comprehensive database, enabling them to understand their customers better and engage with them directly.
Although ONDC currently offers discounts on every order, there are concerns about the user interface and delivery experience compared to established players. However, high net-worth individuals, who are willing to pay a premium for convenience, can benefit from ONDC's innovative approach
Ujjwal Tripathi, founder of Sweet Nation and Nanbai
This direct interaction empowers restaurants to manage their pricing strategies and tailor their offerings to meet customer demands more effectively, according to Pranav Dhuri, Secretary, NRAI Goa Chapter.
The advent of the ONDC era has already generated optimism among industry insiders, but there is a tinge of hesitation too, with many in the food industry still unaware about the ONDC as a concept as well as its immediate and far-reaching implications.
The arrival of ONDC in Goa (and the rest of India) could prove to be a turning point for the restaurant industry, offering a refreshing alternative to the dominance of established food aggregators.
We have lots to gain. It is the power of choice. And putting this power of choice in the hands of the seller and consumer will ensure that monopolistic practices are discouraged. Everybody will benefit at the end of the day, including individual platforms as well as customers
Joseph, founder of Bombil
With its lower commissions, enhanced visibility and direct customer engagement, ONDC presents an opportunity for restaurants to regain control and boost profitability.
With the potential to rationalise prices, enhance customer experiences and provide valuable data insights, ONDC is designed to empower restaurants to regain control over their businesses.