The subsidies planned could result in 80-100 Mn orders going to restaurants via ONDC.
The Open Network for Digital Commerce (ONDC) is reportedly planning to pay out subsidies of INR 100-150 Cr ($12-18 million) to food delivery companies on the network.
The incentives, expected to be rolled out over a period of time, are expected to translate into 80-100 Mn orders going to restaurants through the state-backed quick commerce venture.
“The modalities of the scheme are being worked out and the final amount could change. ONDC officials and representatives from restaurants and food delivery firms have been in conversations for the last month on the issue,” an ET report said, citing sources close to the matter.
These incentives are expected to be rolled out over a period of time.
Inc42 has reached out to ONDC for comments on the development. The story will be updated based on the response.
The move, if implemented, will allow firms such as Magicpin, Paytm, Ola Consumer and Waayu to use the incentives to offer discounts to customers.
In September last year, ONDC slashed the maximum limit of incentives granted to its network participants by 84% to INR 40 Lakh from the earlier INR 2.5 Cr, with an aim to prevent the concentration of a few big players on the network.
The logistics network participants which clocked more than 3 Lakh orders in August 2024, were not eligible to avail the incentives.
Notably, ONDC revised its incentive scheme for the fifth time for its network participants, by reducing food category subsidies by 50% and expanding merchant density in 45 non-metro districts, effective September 4, 2023.
However, the state-backed network crossed the 200 Mn milestone over 2 years after starting operations in January 2023.
India is advancing ONDC as a government-backed initiative to unbundle the digital commerce ecosystem and level the playing field for small and medium enterprises (SMEs). Designed to integrate disparate online platforms, ONDC enables SMEs to participate in the digital economy and compete with dominant players like Amazon and Flipkart.
By leveraging open-source, interoperable protocols, it standardizes key commerce functions such as inventory, logistics, and product cataloging. This drives cost efficiency, promotes inclusion across geographies, and fosters a more competitive landscape — ultimately enhancing consumer choice and experience.
The network has a presence in foodtech, consumer goods, financial services, and mobility segments at the moment.
Source: : Inc42
