A Fresh Bite at Growth? ONDC Plans Big Subsidy Push for Food Delivery Sector

In a country where food is more than just fuel—where ordering in has become a way of life—there’s a new player steadily stirring the pot. The Open Network for Digital Commerce (ONDC), India’s ambitious initiative to democratise digital commerce, is planning a massive fresh push to entice food delivery customers—and this time, it’s coming with a subsidy war chest of up to INR 150 crore.

According to an media reports, ONDC is exploring a new round of subsidies specifically for the food delivery category, aiming to fuel anywhere between 80 to 100 million food orders on its network. This comes as a part of ONDC’s broader goal to challenge entrenched digital marketplaces and give small players a fair shot at the growing Indian digital economy.

So, what's cooking?

ONDC Brings on New Initiative 

Though the details are still being finalised, the incentives are likely to be distributed over a period of time, in collaboration with food delivery platforms that are already active on the ONDC network—names like Magicpin, Paytm, Ola Consumer, and Waayu.

These platforms will be able to pass on the benefits as customer discounts, thereby making ONDC-powered food delivery more appealing and price competitive—especially in comparison to platforms like Zomato and Swiggy.

A source cited, “The modalities of the scheme are being worked out and the final amount could change.” Discussions have reportedly been ongoing between ONDC officials, restaurant partners, and food delivery companies for over a month now.

The official confirmation from ONDC is still awaited, but the development has already sparked curiosity across the startup and restaurant ecosystem.

Course Correction: A Shift from Earlier Strategy?

This move may seem aggressive, but it’s not ONDC’s first flirtation with subsidies.

In September 2023, ONDC had significantly cut back its incentives—from a maximum of INR 2.5 crore to INR 40 lakh, an 84% reduction. The rationale? To prevent a few dominant players from monopolising the benefits and to ensure a wider, more inclusive distribution of incentives.

Additionally, ONDC had tightened rules, making logistics network participants that had already clocked over 3 lakh monthly orders ineligible for subsidies. The food delivery subsidy was also halved, while ONDC expanded its merchant reach in 45 non-metro districts, pointing to a clear effort to decentralise digital commerce.

Now, with the new plan being discussed, ONDC appears to be fine-tuning its balancing act—supporting growth while avoiding market distortions.

200 Million Orders & Counting: ONDC’s Impact So Far

Despite its teething issues, ONDC has managed to cross the 200 million order milestone since its launch in January 2023—a promising indicator that the idea of a “network of networks” in digital commerce is catching on.

Set up with the vision to open up e-commerce to India’s small businesses, ONDC acts as a bridge between platforms, logistics, merchants, and consumers. Unlike traditional marketplaces, ONDC doesn’t own the customer—it merely facilitates transactions across a decentralised ecosystem.

Today, ONDC’s footprint extends beyond food—it also touches consumer goods, mobility services, and financial services, steadily building out an alternative to platform-centric models.

What's the Delay in Network Fees?

While the subsidy push makes headlines, there's another development brewing quietly: the postponement of ONDC’s network fee implementation. The delay, insiders say, is to ensure that participants across the network have enough time to align internal processes and smoothly adapt to the upcoming changes.

This suggests that ONDC, despite its bold ambitions, is taking a collaborative and calibrated approach, mindful of the operational realities of the startups and merchants it hopes to empower.

What It Means for Startups, Merchants & You

For emerging startups, especially in the foodtech space, this fresh incentive plan could level the playing field in a market dominated by well-funded incumbents. With lower customer acquisition costs via subsidies, ONDC may offer an alternative channel to scale faster, reach new customers, and keep overheads in check.

For restaurants and small merchants, this opens a new channel to go digital—without paying steep commissions—potentially increasing their margins.

And for customers, it could mean one thing: cheaper, more transparent food delivery options that support local businesses.

ONDC’s story has always been about inclusion, innovation, and reimagining digital commerce the Indian way. While challenges around adoption, user experience, and logistics remain, the new INR 150 Cr subsidy push suggests that ONDC is willing to course-correct, iterate, and double down where needed.

As India’s digital appetite grows—both literally and metaphorically—this next phase for ONDC could be its most defining yet.