Explained: What is ONDC food delivery app? How is it cheaper, different from Swiggy and Zomato?

Swiggy and Zomato food delivery applications have now become a household names when the hunger pangs hit late at night or when you want groceries delivered to your doorstep within minutes. Now, there’s a new food delivery application in town – ONDC.

As per reports, the ONDC food delivery platform will be offering tough competition to Swiggy and Zomato as it is expected to have exceptionally low prices. ONDC is a platform funded by the government and is expected to offer similar services like any other food delivery application.

What is ONDC food delivery app?

ONDC stands for Open Network for Digital Commerce and the application is currently available in Beta testing mode in 180 cities across India. ONDC is aimed at creating an e-commerce website experience, somewhat similar to Amazon and Flipkart.

Some of the services available on ONDC are "Sell on ONDC/Create a Seller Experience", "Create a Buyer Experience", "Provide Software as Service", "Provide Other Services" and "Buy on ONDC", just like Amazon or Flipkart e-commerce apps.

It must be noted that ONDC currently does not have a separate app for ordering food, the customers have an option of ordering food through Paytm and Magicpin. It also delivers groceries and home essentials, similar to Blinkit and Swiggy Instamart.

Is ordering food on ONDC cheaper than Swiggy, Zomato?

Many social media users have pointed out that there is a major price difference between ordering food on Swiggy and Zomato and ONDC, with the charges on the latter being significantly less. There is a major reason behind this price difference.

The reason behind this is that Swiggy and Zomato charge around 25-30 percent commission from the restaurant, while ONDC charges only 2-4 percent commission. Further, ONDC is also offering a flat Rs 50 discount per order currently, making food significantly cheaper.

This means that if the ONDC platform plays its cards right, it can emerge as a tough competitor for Zomato and Swiggy, especially since many social media users have pointed out that it has a quick delivery and response time.

READ | Zomato demands commission hike from restaurants, faces pushback in industry