A number of Domino’s Pizza outlets in the Delhi-NCR region have now joined the Open Network for Digital Commerce (ONDC). This strategic move is expected to assist Jubilant FoodWorks, the franchise owner, in bolstering profit margins and reducing the long-term dependence on online sales platforms such as Zomato and Swiggy.
Even though Domino’s outlets can be found on PhonePe’s Pincode app, they remain absent from other consumer platforms within the network, such as Paytm and Ola. SnackFax previously reported that the pizza chain has been actively incorporating ONDC as a sales channel since the year 2023.
Continue Exploring: Domino’s Pizza takes strategic step, set to join government’s ONDC network
While the majority of restaurants have joined ONDC through seller-side platforms like Magicpin, Growth Falcon, and e-Samudaay, Domino’s has independently connected with the government’s e-commerce network. This allows Domino’s to avoid paying fees to an intermediary for its presence on ONDC.
The ONDC model dissects the e-commerce value chain into various components, including the buyer-side app, gateway, seller-side app, and logistics providers. Any application, whether it’s an e-commerce platform, banking app, D2C app, or ride-hailing app, has the potential to function as a “buyer-side app.” In this role, consumers can log in to search for products and finalize transactions.
Likewise, a “seller-side” app serves as a platform where individuals or businesses, such as fashion brands, wholesalers, retailers, restaurants, cab drivers, kirana stores, and home service providers like plumbers or electricians, can register to offer their goods or services. An e-commerce platform has the option to function as both a buyer and seller app, or it may choose to operate exclusively in one of these capacities.
ONDC is viewed as a counterbalance to the dominance of Swiggy and Zomato in food delivery, Ola and Uber in ride-hailing, and Amazon and Flipkart in online retail.
Continue Exploring: ONDC sparks price war, threatens Zomato and Swiggy dominance in food delivery space
As per ONDC, reduced commissions within the network are anticipated to result in more economical prices. Sellers such as restaurants, grocery shops, and electronics brands are expected to extend these benefits to consumers by offering more affordable products.
In December, sources close to the matter revealed that ONDC achieved a milestone by surpassing 5 million transactions in a month, encompassing both ride-hailing and retail purchases.
Out of the 5.5 million transactions facilitated by ONDC in December, 2.1 million were categorized under retail, while the remaining 3.4 million fell within the mobility sector. Among retail transactions, a third were dedicated to food delivery and fashion purchases, with the remaining orders spanning newer segments such as cosmetics and electronics.
The current distribution of retail purchases marks a significant shift from the transaction breakdown in early 2023. During that period, retail constituted a mere 5-10 percent, while the mobility category overwhelmingly dominated with 90-95 percent of all ONDC transactions.
In the course of 11 months, retail transactions on ONDC have witnessed a substantial increase, rising from 1,281 in January to 2.1 million in December.