In January, PhonePe announced its plan to enter the e-commerce market by investing in several online retailers. The company has already partnered with ShopClues and BigBasket, and it plans to invest an amount of $200 million in participating outlets over the next five years. This is a strategic move for PhonePe, as the Indian population is increasingly turning to online retail for their purchases. With more than 190 million active users, PhonePe is well positioned to become India’s leading e-commerce platform.
The launch of the Walmart-backed app marks the second such instance of a large e-commerce player partnering with ONDC. In February, Amazon India debuted an app powered by ONDC that allows customers to purchase products from select merchants without having to pay any commissions.
The establishment of ONDC is an important development for India’s e-commerce sector. It will allow buyers and sellers to do business using any app or service, rather than relying on the proprietary services offered by Amazon and Flipkart. This will disrupt the consumers’ reliance on using these platforms and help promote competition between the two giants in India’s e-commerce market.
The PhonePe co-founder and Chief Executive, Sameer Nigam believes that the eCommerce industry is suffering from friction between consumers and sellers. He believes that this can be resolved by making it easier for consumers to access products they want, without having to worry about where those products originate from. In a world where convenience reigns supreme, PhonePe aims to be at the forefront of this change.
Sangeetha Mobiles, a 48-year-old retailer with only about $4 million in revenue, is hoping that ONDC’s entry into the market will force incumbents to lower their fees and compete on price. Competitors at the conference speculated that ONDC may struggle to make a significant dent in the market given its relatively small size and historical reliance on subsidies from the government.
The announcement that PhonePe has signed up to OnDC is remarkable in a number of ways. Firstly, it shows the loyalty and commitment of PhonePe to the digital detox campaign, which is aiming to create awareness about the harmful effects of internet addiction and how it can be prevented. secondly, it highlights how important online detox programs are for
ONDC is a major player in the e-commerce market, but it has some areas that need to be ironed out. For example, Morgan Stanley pointed out that ONDC still has some kinks in its system, such as an unreliable delivery system. However, its potential impact on the sector is undeniable, and it is predicted to be worth $133 billion by 2025.
Execution challenges between sellers and buyers are only going to get more difficult as the market becomes increasingly automated. As a result, companies that can solve these challenges will have an advantage over their competitors.
