Ola expands on ONDC, enters food & grocery markets

Ola plans to expand its presence across India on the government-supported Open Network for Digital Commerce (ONDC), specifically in the food and beverage (F&B) sector, according to reports. Currently, Ola enables F&B orders on ONDC through its app and has also ventured into the grocery segment, with plans to explore additional sectors soon.

In a related development, Uber is reportedly preparing to roll out intercity transit and bus services on ONDC, Ola, which already offers logistics, as a service on ONDC, is also expected to introduce warehousing solutions.

Launched by the Government of India, ONDC aims to decentralise e-commerce by providing small businesses and local vendors with a level playing field to compete against larger platforms. A recently published white paper, titled 'Driving Digital Inclusion, Open Network and New Business Models in Mobility Apps', examines the shortcomings of current ride-hailing systems, such as limited driver earnings and subpar customer service.

The report estimates that implementing open network models in India's mobility sector could contribute Rs. 51,000 crore to Rs. 67,000 crore annually to the economy. Additionally, driver earnings could see a 30% increase, potentially boosting their yearly income by Rs. 1.36 lakh.

Starting January 1, 2025, ONDC will introduce a Rs. 1.50 transaction fee on orders exceeding Rs. 250. Sellers, including logistics providers, lenders, and insurers, will bear this charge, which is designed to ensure the platform's financial sustainability.