You can now order Domino's Pizza using ONDC platforms
What's the story
In a move aimed at reducing its dependence on food delivery platforms like Zomato and Swiggy, several outlets of Domino's pizza in Delhi-NCR have joined the Open Network for Digital Commerce (ONDC).
This move will help Domino's franchisee owner Jubilant FoodWorks in increasing its profit margins.
Although Domino's stores are available on PhonePe's Pincode app, they are yet to appear on other ONDC buyer-side platforms such as Paytm and Ola.
Details
Domino's integration with ONDC without intermediaries
In a unique approach, Domino's has independently integrated with the government-backed ONDC, bypassing seller-side platforms like Magicpin, Growth Falcon, and e-Samudaay.
This allows the pizza chain to avoid paying intermediary fees to appear on the network.
ONDC is viewed as a counterbalance to the market dominance of companies like Swiggy and Zomato in food delivery, Ola and Uber in ride-hailing, and Amazon and Flipkart in online retail.
What Next?
ONDC charges lower commission than other e-commerce platforms
ONDC, introduced in 2021, is a government initiative supported by private partners.
It is an open, e-commerce protocol that lets buyers and sellers interact directly.
ONDC charges lower commissions, resulting in better profit margins for sellers and cheaper prices for buyers as sellers pass on some percentage of the savings to customers.
In December 2023, ONDC reached a milestone of five million transactions in a single month across ride-hailing platforms and retail purchases.
Insights
ONDC retail purchases grew by 1,700 times in 11 months
Retail transactions on ONDC have skyrocketed by over 1,700 times in just 11 months, from 1,281 in January 2023 to 2.1 million in December 2023.
Of the 5.5 million transactions made via ONDC in December, 2.1 million were retail purchases, while 3.4 million were mobility-related.
Within the retail sector, food delivery and fashion purchases each made up a third of the 2.1 million orders, with the remaining transactions spread across emerging categories such as cosmetics and electronics.