The decision to streamline its offerings on ONDC comes after PhonePe’s separation from the Flipkart group last year, leading to the establishment of Pincode as a separate entity and app
In a strategic move aimed at refining its ecommerce approach, Walmart-backed PhonePe has announced significant changes to its subsidiary, Pincode, within the Open Network for Digital Commerce (ONDC). The company has opted to exit several categories including fashion, grocery, and electronics, while maintaining its focus on food delivery services on the network, according to media reports.
The decision to streamline its offerings on ONDC comes after PhonePe’s separation from the Flipkart group last year, leading to the establishment of Pincode as a separate entity and app. Effective Tuesday, the company has communicated these changes to the government-backed ONDC network, signalling a shift in its ecommerce strategy.
Pincode, operated by PhonePe Payment Technology Services, will now solely focus on food and unreserved ticket booking domains within the ONDC registry. This decision is part of PhonePe’s broader realignment of its internal approach, as stated in media reports
According to reports, PhonePe has chosen to narrow down its focus to specific segments within ONDC, aligning its strategy with evolving market dynamics. The decision to exit non-food categories also reflects the company’s commitment to delivering a seamless consumer experience. Reports noted that while ONDC holds promise, certain aspects of the network are still evolving, impacting the end-user experience.
PhonePe initially launched its e-commerce venture, Pincode, on ONDC last year, offering a wide range of categories including groceries, food delivery, medicines, fashion, and electronics. The services were initially rolled out in Bengaluru before expanding to 10 cities.
As PhonePe continues to adapt its strategy to meet changing market demands, its decision to refocus Pincode’s offerings underscores the importance of delivering high-quality services and experiences to consumers in the rapidly evolving e-commerce landscape.
