Is ONDC Failing or Evolving?

ONDC, the Open Network for Digital Commerce launched by DPIIT in April 2022, set out to democratize digital commerce and challenge platform monopolies like Amazon–Flipkart and Swiggy–Zomato. By early 2025, retail categories such as food, groceries, and fashion are slowing, with monthly retail orders dropping from 6.5 million to 4.6 million and retail’s share sliding from 47% to 29%. Yet ONDC has scaled to 600+ cities, onboarded over six lakh sellers, and sees Tier-2&3 cities driving more than 70% of traffic. Mobility, powered by Namma Yatri and Ola, now contributes 56% of transactions, while logistics grows steadily, suggesting evolution rather than failure.