Restaurant body NRAI's integration plans with ONDC go cold amid top-level churn

Restaurant body NRAI loses appetite for ONDC, pauses integration plans amid churn

The National Restaurant Association of India (NRAI) has put the brakes on its plans to onboard members onto the Open Network for Digital Commerce (ONDC), citing operational instability and a lack of strategic commitment from the platform, people aware of the developments told Moneycontrol.

The move marks a significant shift in stance from India’s largest restaurant body, which had initially viewed ONDC as a potential counterweight to food delivery giants Swiggy and Zomato. Recently, NRAI alleged that both platforms were engaging in private labelling through the launch of their 10-minute food delivery services—Bistro by Zomato and Swiggy’s Snacc—raising concerns about fairness and competition.

NRAI had, in January, actively explored onboarding member restaurants onto ONDC - the government-backed initiative aimed at unbundling digital commerce. However, those plans have now been put on the backburner. The association is taking a wait-and-watch approach amid what it sees as ongoing operational instability within the network.

"A lot of shuffle has happened (at the top level) at ONDC over the past few months, and we’re waiting for greater stability,” said a person affiliated with NRAI. “There are too many buyer and seller apps, and consumers are still unclear about what ONDC represents."

However, ONDC and NRAI have refuted these claims, saying that the engagements between the two parties are ongoing and purposeful. In a joint statement, the organizations said that the claims were inaccurate and misleading.

"The collaboration between NRAI and ONDC remains active, deliberate, and forward-looking. In fact, both organisations are working more strategically than ever to shape a robust, inclusive framework that supports the growth and digital empowerment of food businesses across the country," the statement read.

The instability at ONDC has been compounded by a series of top-level exits. Earlier this month, ONDC’s founding managing director and chief executive officer Thampy Koshy stepped down, nearly three years after taking charge. His departure followed those of Chief Business Officer Shireesh Joshi and non-executive chairperson R S Sharma, making it the third senior-level exit in just six months.

To ensure business continuity, the ONDC board has set up an interim management committee to oversee day-to-day operations during Koshy’s transition.

A recipe that's not working

The broader concern among the restaurant industry is that ONDC, in its current form, lacks the strategic alignment and ecosystem investment required to become a viable alternative to existing aggregators.

"For ONDC to truly work for the restaurant industry, it must demonstrate deeper commitment. We don’t want it to function merely as a coordination platform — we need it to have real skin in the game,” the source added. “Right now, there’s too much complexity (in how ONDC operates), with too many players pulling in different directions."

In its statement, however, ONDC clarified that its engagement with NRAI is ongoing and the network is exploring "innovative pathways that benefit both industry stakeholders and consumers."

“We have an ongoing engagement with the National Restaurant Association of India (NRAI) and together, we are working to build an inclusive, transparent, and interoperable network that empowers lakhs of restaurants and food brands to participate in digital commerce on their own terms. This partnership is crucial to riving access, visibility, and equitable growth for food businesses of all sizes — from neighbourhood outlets to national brands,” said Marichi Mathur, SVP at ONDC.

Fizzling out F&B

This setback comes amid waning traction in ONDC’s food and beverage (f&b) category, which saw a 10 percent month-on-month drop to 14 lakh orders in February, according to data from imdustry sources. The dip reflects a broader slowdown in ONDC’s retail performance.

Retail—once ONDC’s largest category—has steadily lost ground. From accounting for 47 percent of total transactions in October 2024, it fell to just 29 percent by March 2025. In contrast, mobility surged ahead, growing from a 40 percent share to 56 percent over the same period.

ONDC broadly classifies its transactions into three segments: mobility (ride-hailing), retail (including food, grocery, fashion, and electronics), and logistics.

Multiple headwinds have buffeted ONDC’s retail ambitions. The platform has struggled to carve a clear identity for itself, while poor user experience, reduced consumer incentives, and intensifying competition from quick commerce platforms have further eroded its momentum, Moneycontrol reported earlier.

New flavours on the table

Even as talks with ONDC have come to a standstill, NRAI is evaluating alternative aggregator platforms as potential channels for member restaurants. One such contender is Rapido, which has recently expanded into food delivery.

“NRAI is in discussions with emerging platforms like Rapido,” said another person familiar with the matter. “The association has shared feedback on the need for a more restaurant-friendly ecosystem. If these platforms can align with industry needs, they could emerge as credible alternatives to existing aggregators.”

These discussions are, however, in early stages.

Regardless, with ONDC off the boil and faith in food delivery giants simmering, the NRAI is back to scouting the menu - this time in search of platforms that truly cater to restaurants.