Open Network for Digital Commerce (ONDC) Eyes Media Platforms for E-commerce Expansion

The Open Network for Digital Commerce (ONDC), a government-backed initiative aiming to democratize e-commerce in India, is exploring new avenues for growth. According to a report by Moneycontrol, ONDC is in advanced talks with news media platforms, including the digital arm of Dainik Jagran, for potential integration.

ONDC's Proposition to Media Houses

The core idea behind ONDC's outreach to media platforms is to create a value proposition beyond traditional advertising. The memo circulated by ONDC reportedly highlights the potential for media houses to directly facilitate e-commerce transactions on their platforms. This would allow them to move beyond advertising revenue and tap into the lucrative realm of demand generation.

Benefits for News Platforms

ONDC argues that relying solely on advertising and affiliate marketing distances media platforms from the most valuable aspect of the e-commerce cycle - the transaction itself. This current model, according to ONDC, limits media platforms' ability to customize offerings and charge competitive fees.

Context: News Platforms vs. Tech Giants

The timing of this initiative is noteworthy, considering the ongoing friction between news platforms and tech giants like Google and Meta. Indian publishers have accused these tech companies of dominating the news aggregation space, leading to a decline in advertising revenue for traditional media houses. An antitrust case against Google regarding this issue is currently under review by the Competition Commission of India (CCI).

Strategic Advantages for ONDC

Onboarding news media platforms presents a strategic opportunity for ONDC. This move would not only attract new participants to the network but also potentially expand the user base. A report by EY-FICCI predicts India's online media space to reach 500 million consumers by 2026, a significant market segment ONDC seeks to capitalize on.

ONDC's Growth Trajectory

This initiative aligns with ONDC's continuous efforts to expand its network and offerings. The platform already boasts listings across e-commerce, mobility, fintech, and agritech sectors. With this diversification, ONDC aims to reach a GMV (gross merchandise value) of $250-300 billion by 2030. Recent additions to the network include ride-hailing giant Ola and Kochi Metro Rail, further solidifying ONDC's position as a comprehensive digital commerce platform.

ONDC's outreach to media companies signifies a significant step towards its goal of democratizing e-commerce in India. By offering a compelling value proposition and capitalizing on growing online media consumption, ONDC is poised to become a major player in the Indian digital commerce landscape. As the platform integrates more diverse participants, the benefits for both consumers and businesses are likely to increase.