Why Flipkart's logistics arm Ekart has joined ONDC network
What's the story
Flipkart's logistics arm, Ekart, has joined the Open Network for Digital Commerce (ONDC) network. The move is aimed at enhancing the reach and efficiency of e-commerce logistics in India. "With this integration, Ekart brings to the table nationwide reach, deep logistics expertise, and a strong commitment to service excellence," said Mani Bhushan, Chief Business Officer at Ekart.
Expansion plans
Ekart brings vital logistics capacity to ONDC network
The integration with ONDC will enable Ekart to extend its pan-India presence, catering to sellers and brands ranging from MSMEs (Micro, Small and Medium Enterprises) to large enterprises. Vibhor Jain, Acting CEO and COO at ONDC, said "Ekart's scale and operational depth bring vital logistics capacity to the ONDC Network." This move is expected to empower sellers without logistical constraints.
Order drop
ONDC's retail orders decline
The development comes as ONDC focuses on scaling e-commerce logistics after a decline in retail orders. In February, ONDC's retail orders (including e-commerce, grocery and food delivery) fell to 4.6 million from a peak of 6.5 million in October last year. The decline was witnessed after the network reduced incentive payouts to its participants such as Magicpin, Paytm and Ola Consumer, among others.