The State of ONDC: 6 Months Later, What's Actually Working
ONDC has been live long enough to separate the hype from the reality. Here's an honest snapshot of where the network is, which categories have real volume, and what builders should know.
Key takeaways
- Strong categories: food delivery, groceries, urban mobility in pilot regions.
- Weak categories: long-tail retail, fashion, electronics, high friction, low repeat.
- BAP concentration: a few apps drive most consumer-side volume.
- Seller adoption growing but uneven; integration still has rough edges.
- The protocol is stable; the operational layer is still maturing.
Where it's working
Food delivery
ONDC food orders are growing. Lower commissions vs Swiggy/Zomato are real (often 5-8% vs 20-25%). Some quick-commerce players are pushing significant volume.
Groceries
Especially in tier-2 cities, where local kirana stores get visibility they previously didn't.
Urban mobility
Some pilot programs in select cities are functioning, though scale is still small.
Where it's slower
Fashion and apparel
High return rates, complex sizing, low brand discoverability on shared interfaces. Not a great fit yet.
Electronics
Trust and warranty concerns; users still prefer Amazon/Flipkart's accountability model.
B2B
Pilot stage; lots of promise, not much volume.
What builders need to know
If you're considering integration:
- Start with a strong-category pilot. Don't pioneer the categories that aren't working.
- Plan for operational complexity. ONDC adds operational surface area; you need a team that can monitor it.
- Expect protocol updates. The standard evolves; budget for upgrades.
- Treat ONDC as incremental, not primary. Most sellers add ONDC alongside their existing channels.
What we recommend
If you're in food, groceries, or quick-commerce: integrate now. If you're in apparel or electronics: monitor; revisit in 6 months. If you're a SaaS for sellers: ONDC integration is a feature your customers will increasingly ask for.
FAQs
Is ONDC profitable for sellers? Lower commissions help but operational complexity offsets some.
Will Amazon/Flipkart join ONDC? Unlikely as full participants; possible as buyer apps in specific categories.
What does success look like? ONDC at 5-10% of total Indian eCommerce volume in 2-3 years would be transformative.