By: ETtech

6 reasons why ONDC changed its incentive structure from June 1

May 31, 2023

What's new?

The maximum discount per order will be Rs 100, compared to Rs 125 earlier; order value must be over Rs 200 for food orders & Rs 300 for others.

Image Source: ETtech

Sustainability in question

Brokerages and research firms have questioned the sustainability of ONDC’s model, currently driven by discounts and subsidies

Image Source: ETtech

Luring in customers

Incentives were there to attract platforms and customers to get on board ONDC. Now, the aim is to grow organically

Image Source: ETtech

Impact on orders

First set of incentives for subsidising delivery charges, which were capped earlier this month, had an impact on the number of orders

Image Source: ETtech

More competition

Sources said with multiple platforms working on the same network, the competitive intensity will take care of the pricing

Image Source: ETtech

Competition of scale

Benefits of scale enjoyed by Zomato and Swiggy could outweigh ONDC's open protocol & resource pooling, noted brokerage firm Jefferies

Image Source: ETtech

Thanks For Reading!

Next: These are the mobile gaming apps eating most of your data

Read Next