ONDC eyes hyperlocal search engine model – Times of India

Coimbatore: A kirana store owner unlocks his phone screen, opens a popular payment app and searches for a product. Immediately, the products available in his store pop up on the screen.
“That’s because we’re standing close to our store,” he says. “If we did the same exercise at any other location where another shopper is logged on to the network, the search results would show their products on the screen.” The default setting is based on proximity or nearest location, which makes it an efficient hyperlocal search engine.
Welcome to the Open Network for Digital Commerce (ONDC), the UPI-type platform that the government is pushing to democratize retail and harness the power of heroine, Flipkart and other e-commerce giants, which are currently being tested in seven cities including Coimbatore.
Unlike e-commerce apps, which decide who is the best seller for the consumer, ONDC allows users to choose a default setting. So, if you are looking to buy potato chips, the seller closest to your location will be the first to come.
“Consumers can change the default settings, for example, to the best discount available and then the results will be based on the best offer by the store, albeit far away,” said Kumar Venbhu, CEO, GoFrugal. ONDC provides software to a number of early adopters and vendors on the network.
After ordering their product, the consumer can choose their delivery partner from a list of logistics providers, whether it is an independent delivery person with a bicycle or a Dunzo executive on a motorcycle. Venbhu added, “Logistics partners including the seller who has logged into the network can also list their delivery charges for that particular item or distance and the customer can choose based on cost-effectiveness or fastest delivery ”
While vendors, payments and logistics players are still being on-boarded during the pilot phase, the ONDC tab can be embedded in any app.
Vendors who are part of the trial are required to log into ONDC through third-party vendor software such as GoFrugal.
Minister of Commerce and Industry Piyush GoyalThe ONDC-led Coimbatore store visit, believes e-commerce platforms are restrictive and favors the products of the platform developers’ choice. But through ONDC, MSMEs and Startups can take advantage of the opportunities provided by digital advancements in connecting with their customers. While a full rollout is still a few months away, pilots are yet to iron out glitches in the platform, which Infosys Chief advisors include Chairman Nandan Nilekani.
Vembu argues that the way it is designed, ONDC could become the only online network that can deliver sustainable 10-minute deliveries.