India to launch open e-commerce network to take on Amazon, Walmart
By Krishna N. Das
NEW DELHI (Reuters) – India will on Friday launch an open community for digital commerce (ONDC) as the federal government tries to finish the dominance of U.S. corporations Amazon.com and Walmart within the fast-growing e-commerce market, a authorities doc confirmed.
The launch of the platform comes after India’s antitrust physique on Thursday raided home sellers of Amazon and a few of Walmart’s Flipkart following accusations of competitors legislation violations. The businesses didn’t reply to request for touch upon the raids.
Indian retailers, key supporters of Prime Minister Narendra Modi, have lengthy contended that Amazon and Flipkart’s platforms profit a couple of massive sellers, through predatory pricing, although the businesses say they adjust to all Indian legal guidelines.
The federal government’s so-called ONDC platform will enable patrons and sellers to attach and transact with one another on-line, it doesn’t matter what different utility they use. It will likely be soft-launched on Friday earlier than being expanded, the commerce ministry instructed Reuters.
The federal government doc mentioned that two giant multinational gamers managed greater than half of the nation’s e-commerce commerce, limiting entry to the market, giving preferential therapy to some sellers and squeezing provider margins. It didn’t title the businesses.
Amazon and Flipkart didn’t instantly reply to requests for touch upon ONDC.
The doc mentioned India’s ONDC plan aimed to onboard 30 million sellers and 10 million retailers on-line. The plan is to cowl not less than 100 cities and cities by August.
It could give attention to apps in native languages for each patrons and sellers, with a particular emphasis on small retailers and rural shoppers, the doc mentioned in regards to the mission.
The federal government mentioned it had already acquired assist from retailers and enterprise capital corporations. Lenders such because the State Financial institution of India, ICICI Financial institution and Financial institution of Baroda have already dedicated whole investments of two.55 billion rupees ($33.26 million) into ONDC.
A Reuters investigation final 12 months, primarily based on Amazon inside paperwork, confirmed the corporate had given preferential therapy for years to a small group of sellers on its platform and used them to bypass Indian legal guidelines. Amazon denies any wrongdoing. (https://reut.rs/3rTWXxi)
(Reporting by Krishna N. Das; Extra reporting by Aditya Kalra; modifying by David Evans)
