ONDC Revolution: Can Magicpin Outpace Zomato and Swiggy?

For years, Zomato and Swiggy have reigned supreme in India’s food delivery market, creating a duopoly that seemed unshakable. However, 2024 brought a new contender to the table: Magicpin, riding the wave of ONDC (Open Network for Digital Commerce). With ONDC crossing over 2 lakh daily food delivery orders—roughly 10% of Zomato and Swiggy’s combined scale—the landscape is shifting.

Could Magicpin, powered by ONDC, become a serious challenger? Let’s dive in.

The ONDC Factor

The Indian government’s ONDC initiative has leveled the playing field in digital commerce, offering platforms like Magicpin a chance to shine. By reducing commissions to low single digits, ONDC empowers restaurants to list their menus at lower prices compared to the 20-25% commissions charged by Zomato and Swiggy.

This pricing disparity is attracting a wave of users like you and me who are looking for better value without compromising on delivery time or customer support.

The Magicpin Advantage

Magicpin’s emergence as a viable food delivery alternative can be attributed to two key factors:

1️⃣ Competitive Pricing:The low commissions translate directly into lower menu prices. For cost-conscious customers, this is a game-changer, especially as inflation continues to squeeze household budgets.

2️⃣ Improved Delivery and Support:While early ONDC-based deliveries were plagued by delays and poor support, Magicpin has made significant strides. By September 2024, delivery times and customer service had reached parity with Zomato and Swiggy in many major cities.

The Consumer Shift

For years, high commissions forced restaurants to inflate prices on Zomato and Swiggy, a cost often borne by consumers. With Magicpin, restaurants can keep their prices closer to dine-in rates, making food delivery affordable again.

Once consumers experience this price advantage, many are unlikely to return to higher-priced platforms.

Challenges and Opportunities

Challenges:

• Magicpin must ensure consistency in delivery and customer support across all cities.

• Scaling operations while maintaining competitive pricing will require balancing volume and profitability.

Opportunities:

• ONDC’s growing user base presents a vast market waiting to be tapped.

• Magicpin can invest in marketing campaigns to highlight its affordability and reliability, much like its recent full-page ad that hinted at “2019 prices.”

Will Magicpin Dethrone Zomato and Swiggy?

While Magicpin’s rise is promising, it’s too early to declare the end of Zomato and Swiggy’s dominance. Both platforms have strong brand loyalty, vast delivery networks, and established partnerships. However, Magicpin’s value-driven model is hitting where it hurts—price sensitivity.

For the middle class, every saved rupee matters, and Magicpin’s ability to offer lower costs without compromising on quality positions it as a formidable challenger.

Conclusion

The ONDC-backed Magicpin may not completely replace Zomato and Swiggy, but it’s undoubtedly disrupting the food delivery market. By breaking the duopoly, Magicpin is giving consumers more choice and affordability—a win for everyone except the incumbents.

As 2025 unfolds, it will be exciting to see how this competition reshapes the food delivery ecosystem.

What’s your take? Could Magicpin be the next big thing in food delivery? Share your thoughts in the comments below!