ONDC takes on the Swiggy-Zomato duopoly | India in multilateral talks to build rail connections to West Asia |

Online food orders to be cheaper? ONDC turns Swiggy/Zomato killer in some cities

The National Restaurant Association of India (NRAI) has long opposed the duopoly of Swiggy and Zomato in the food aggregator space; now, the government-backed?Open Network For Digital Commerce (ONDC) could offer an alternative.

How it works:?ONDC has already?partnered with various restaurant networking partners?such as Magicpin and DotPe, as well as other apps like Paytm, Meesho, etc.

• These buyer apps?act as storefronts?allowing customers to order food or other products from businesses.

The intrigue:?By partnering with buyer apps that already have millions of users, ONDC avoids incurring the same hefty customer acquisition cost as aggregators.

• Furthermore, restaurants on ONDC platforms have access to customer data, which helps them understand the market better, whereas Swiggy and Zomato do not share their customer database.
• ONDC?does not charge restaurants hefty platform fees?and its cut is much smaller (8-10%) compared to the commissions charged by Swiggy or Zomato (18-25%).
• It also offers free deliveries, and has third-party agents from logistics partners like Shadowfax or Dunzo complete the delivery, enabling restaurants to offer bigger discounts and pass on cost savings to customers.
• All these factors stacked together mean that ordering via ONDC can be as much as?60% cheaper compared to Swiggy or Zomato.

Yes, but:?Scaling and expanding operations outside a few metro cities will be time-consuming and challenging, particularly when onboarding smaller players with less technical know-how.

• Furthermore,?sustaining profitability will be difficult—particularly as Swiggy and Zomato themselves facing the same issue even without offering hefty discounts.
• Improving discoverability and awareness for customers is also a challenge to be overcome, and it remains to be seen if ONDC can compete with incumbents on aspects like in-house logistics and standardised customer service (e.g., refunds).

US, Saudi, UAE, India to develop rail network connecting West Asia to India via shipping lanes

The US, Saudi Arabia, UAE, and India are?discussing a potential joint infrastructure project?aiming to connect Gulf and Arab countries via railways, which would also link to India through seaports in the region.

Why it matters:?The White House is pushing for this initiative as part of its strategy to increase regional integration and?counter China’s Belt and Road vision, which considers the Middle East an essential part of the project.

The details:?The project would connect Arab countries in the Levant and the Gulf via railways and extend to India through seaports in the Gulf.

• India, the US, Israel, and the UAE initially discussed this idea?in a forum called I2U2, established in late 2021 to discuss strategic infrastructure projects in the Middle East.
• Israel, currently not part of the initiative, could be added in the future if further normalisation of relations in the region occurs.

The big picture:?India, with steady ties to Washington, is seen as a natural ally to counter China’s global influence and also enjoys friendly relations with both Saudi Arabia and the UAE.

• The undertaking has the potential to assist India in?establishing a reputation as an infrastructure constructor?in the railway industry, given its existing expertise in large-scale railway projects.

Between the lines:?China’s Belt and Road project also presents a significant obstacle for India, as China aims to secure a larger portion of trade from Africa, the Middle East, Central Asia, and Europe.

• To counter this, India initially tried to establish its own route to Central Asia through Iran and then onto Europe, called the International North-South Transit Corridor. However, this project?has not been successful.

ICYMI

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• The?heated exchange between Virat Kohli and Gautam Gambhir?during a recent IPL 2023 match has been?turned into a video game by a coder, inviting users to choose sides and engage in a virtual fight.
• Facebook CEO Mark Zuckerberg recently competed in his first jiu-jitsu tournament,?winning gold and silver medals, showcasing his talents beyond the tech world.
• BMW has?issued a "do not drive" warning to the owners of about 90,000 older models?because of defective airbags that might explode in a crash.
• A Pakistan International Airlines (PIA) flight bound for Lahore?entered Indian airspace?for approximately 10 minutes on May 4 around 8 PM due to heavy rainfall in Pakistan.
• Another blast occurred near the Golden Temple?in Amritsar early on Monday morning, just hours after?several people were injured in an explosion?in the same area on Sunday.
• A MiG-21 jet of the Indian Air Force?crashed in Hanumangarh, Rajasthan during a routine training sortie leaving at least 2 civilians dead.
• Sonam Kapoor’s appearance at the recent?coronation of the UK’s King Charles III?has?gone viral for all the wrong reasons.