The Open Network for Digital Commerce (ONDC) continues to witness remarkable traction, with a record 89 lakh transactions recorded in the month of May, signaling robust growth and adoption across retail and ride-hailing segments. This surge reflects the platform’s pivotal role in fostering digital commerce and facilitating seamless transactions across diverse sectors.
Rapid Expansion in Transaction Volume
May witnessed a notable 23% month-on-month increase in transaction volume, with the retail segment emerging as a frontrunner, registering a staggering 50 lakh orders, marking a significant 39% growth from April. Notably, the grocery and food delivery categories crossed the 10 lakh order milestone each for the first time in May 2024, underscoring the platform’s growing relevance in catering to evolving consumer preferences.
Retail Segment Dynamics: Diversification and Growth
ONDC’s retail segment showcased notable diversification, with categories like grocery, fashion, home, and kitchen witnessing rising shares of transactions. While the food segment continued to account for a significant portion of retail orders, its share decreased to around 20% from 76% a year ago, reflecting the expanding footprint of other retail sub-segments on the platform.
Ride-Hailing Segment Performance
In the ride-hailing segment, ONDC witnessed moderate growth, recording 38 lakh trips in May compared to 36 lakh transactions in April. Although this segment experienced fluctuations, with the highest number of trips recorded in March, the platform remains a key player in facilitating mobility solutions and enhancing user convenience.
Geographic Distribution and Seller Landscape
Geographically, regions like Delhi, Uttar Pradesh, and Maharashtra emerged as top contributors to ONDC’s transaction volume, highlighting the platform’s nationwide reach and accessibility. Additionally, ONDC boasts a robust seller ecosystem, comprising 5.35 lakh sellers across 1,200 cities, with small sellers constituting a significant portion, further democratizing access to digital commerce opportunities.
Industry Adoption and Future Outlook
The surge in ONDC transactions coincides with increased interest and participation from major players in the Indian ecommerce landscape. Notable companies like Ola, PhonePe, and Shiprocket have integrated their services with ONDC, leveraging its open protocol-based network to enhance their business operations and cater to diverse consumer needs. Moreover, conglomerates like the Adani Group and Reliance Retail are exploring opportunities in ecommerce and fintech through ONDC, indicative of the platform’s potential to drive transformative growth and innovation.
Conclusion: Driving Digital Commerce Evolution
As a catalyst for digital commerce evolution, ONDC plays a pivotal role in reshaping India’s ecommerce landscape and fostering inclusive growth. With ambitious targets set by the government to boost ecommerce penetration and achieve substantial gross merchandise value (GMV) milestones, ONDC remains at the forefront of driving innovation, collaboration, and accessibility in the digital economy. As the platform continues to gain momentum, stakeholders across industries stand to benefit from its transformative potential in unlocking new avenues for growth and prosperity.
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