News ECG: Amazon is joining a government-backed e-commerce effort in India that aims to “democratize” internet purchasing in South Asia and, shockingly, challenge the hegemony of firms like the US retail titan.
In a statement released on Friday, Amazon said it will cooperate with the Open Network for Digital Commerce, a nonprofit organization founded by India’s commerce ministry, to digitize local retailers in 2021 using a combination of its smart commerce platform and logistics network. is for
Manish Tiwary, Country Manager, Amazon India, stated that “Amazon’s vision and commitment for India are strongly aligned with ONDC’s aims of digitally enabling small businesses and delivering simplicity and choice to customers around the country has happened.”
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Amazon’s participation in the project is significant because one of the ONDC’s main selling points to date has been that it aims to break up Amazon and Walmart’s monopoly on Flipkart in the Indian e-commerce sector.
Customers are less dependent on Amazon and Walmart-run exclusive services because of the “interoperable” ONDC network, which enables buyers and sellers to transact regardless of apps or services. With ONDC, New Delhi is attempting to build on the success it had with UPI, the open platform for mobile payments that has upended the business models of companies like Paytm and Mobikwik.
A member of the ONDC network is Paytm. Executives from the industry claim that even though ONDC is still in its infancy, there are still many areas where it can be improved.
For instance, it’s unclear who bears responsibility if a customer’s order isn’t delivered. And in contrast to UPI, which saw New Delhi vigorously promoting the network for digital payments, ONDC has not gotten any public acclaim or backing.
“We are pleased that Amazon has a clear plan for joining the ONDC network and is making the first move to become a logistics partner in the ONDC network, which was created to democratize digital commerce globally. According to T Koshy, MD and CEO of ONDC, India is a notion that is leading the world.
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