How will open network for e-commerce work?
NEW DELHI: The government is seeking to replicate the success of the UPI model as it creates the Open Network for Digital Commerce ONDC ), hoping to put in place a backbone on which sellers and logistics service providers can connect with buyers.Positioned as a network, the idea is to enable consumers to log in and look for products or services to meet their requirements. Based on their location, sellers will be listed along with the product details and price to enable the buyers to choose, sources familiar with the plan told TOI.The proposed ONDC will be connected to payment gateways and in case of specific requirements the platform will also offer the delivery and logistics service providers.Government sources said the broad contours of the model are in place and the advisory group, comprising Infosys chairman Nandan Nilekani and National Health Authority CEO R S Sharma, among others, are being consulted to work out a robust platform.An initial pilot involving auto-rickshaws and taxis has been conducted where cabbies and three-wheeler operators were asked to register. Going forward, plans are afoot to focus on kirana stores , delivery service providers and FMCG players for tests in Delhi, Bengaluru, Jaipur, Kochi and Varanasi. These pilots are planned over the next six months or so, sources said.Officials suggested that something like this has not been tried out in other parts of the world. The Centre has been trying to launch a platform for B2B and B2C transactions for several months. The government is seeking to change the rules of the game as it believes that the current platformcentric models require buyers and sellers to be on the same platform, concentrating the market to a handful of players, said sources, adding that sellers are also not in control.If the ONDC model works out, it is seen to emerge as a rival to Amazon and Flipkart with officials hoping that like the UPI boom, large private players will come on board.ONDCs case is similar to e-mails, where the sender and recipient need not be on the same platform to exchange emails. Someone can be on Google , the other person can be on Yahoo , said a source.