According to a Reuters report, Google is interested in becoming part of India’s public e-commerce infrastructure, called the Open Network for Digital Commerce (ONDC). Alphabet (Google) The unit has seen success by participating in Unified Payments Interface (UPI), India’s public digital payment system.
Amazon (AMZN) and Walmart (wmt) dominates the e-commerce market in India, but has been a source of complaints for local retailers. The government of India is attempting to level the e-commerce playing field by enabling local small businesses to better compete with foreign giants. ONDC is leaning on the platform to achieve this goal.
The platform was launched in April and has attracted many participants including banks. According to the report, Google is among many companies that want to be a part of this project. Google’s interest in ONDC follows its success in the UPI system, where it ranks as the second largest payments app by market share.
Can Google repeat its UPI success in ONDC?
Through ONDC, the government is hoping to reduce the cost of doing business online for small retailers. Providers participating in ONDC agree to display shopping lists from other providers in the search results of their Platform. The network has been rolled out in a handful of metro areas and is expected to cover at least 100 cities and towns and reach nearly 40 million vendors by August.
India’s e-commerce industry is projected to grow from $55 billion in 2021 to $350 billion by 2030.
Wall Street’s Tech
The consensus among analysts is a strong buy based on 30 trades. The average alphabetical price forecast of $3,253.80 means a 45% growth potential. Shares are down nearly 23% year-on-year amid a broader market sell-off.
TipRanks’ Smart Score rating system gives Alphabet a score of nine out of 10, indicating the stock has strong potential to beat market expectations.
Important Takeaways for Google
With the rapid rise of online shopping, e-commerce is a promising segment for Google. India’s ONDC project could help supercharge Google’s e-commerce efforts in one of the world’s most important digital markets.
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