Prices set to rise on ONDC as platform reduces incentives to seller-side apps

The Open Network Digital Commerce (ONDC) has been gaining a lot of traction lately with social media being flooded with posts comparing the low prices of food delivery on the platform with those available on apps like Swiggy and Zomato. But now it seems like prices of all goods are set to rise on ONDC as it plans on shrinking the subsidies it provided to seller-side apps.

ONDC recently informed its seller-side applications that delivery cost incentives will now have limits, effective from May 9, Tuesday. This development comes after the orders on the platform peaked due to the relatively lower prices as compared to the food delivery apps.

Now, incentives will be capped at Rs 2,25,000 per seller-side app daily and Rs 3,750 per seller each day.

Before this, ONDC offered a discount of up to Rs 75 for logistics on every eligible order as an incentive.

This was the reason why prices of food was cheaper on ONDC as compared to Swiggy and Zomato for similar orders.

Despite these changes, orders are most likely expected to be lower on ONDC, relative to Zomato and Swiggy. This is because the food delivery apps charge up to 25 per cent commission, while ONDC charges 3 per cent commission.

Business Today has reached out to ONDC for an official comment on this development. The story will be updated as and when they respond.

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