Calls for a Stronger Tech Infrastructure: Strengthen ONDC; Demand for Bharat Kirana - a Bharat Taxi-Like Platform to Help Kirana Stores Compete with Quick Commerce
Federation of Retailer Association of India (FRAI), a representative body of about 80 lakh micro, small and medium retailers from across the country with a membership of 42 Retail Associations, on the occasion of the 9th National Retailers Day, organised an event in New Delhi and appealed to Government highlighting the urgent need for stronger support for small retailers as they face an existential crisis due to the rising threat of e-commerce and quick commerce platforms.
The rapid rise of e-commerce and quick-commerce platforms in India is causing a steep decline in income and livelihoods for thousands of local grocery and kirana shop owners. According to market studies, at least two lakh Kirana stores had closed last year as consumers had shifted to quick commerce platforms such as Blinkit and Zepto. Further, a December 2024 study by JP Morgan on offline grocery stores in Mumbai showed that 60 per cent of them have seen a decline in their sales volume due to the mushrooming of dark stores of quick commerce platforms.
According to FRAI, over the past few years, digital platforms have reshaped consumer behaviour through deep discounts, rapid delivery promises, and aggressive marketing campaigns, leaving small retailers struggling to compete on an uneven playing field. As a result, many kirana stores are witnessing dramatic reductions in footfall and sales.
Compounding the problem is the manner in which large, often foreign-funded e-commerce and quick-commerce companies engage with the small-retailer ecosystem. Instead of empowering shop owners to grow their independent businesses, many of these platforms are turning them into delivery personnel or last-mile service agents. This shift discourages and diminishes entrepreneurship, converting once-independent proprietors into gig-economy workers with uncertain incomes and limited protections.
Given this grim trajectory, there is an urgent need for a fair, well-designed support model that protects the interests of small retailers and local entrepreneurs. Without intervention, the backbone of India’s informal retail economy risks collapsing — along with the livelihoods of millions of small-scale shop owners who have long served as the heart of community commerce.
The retailers in the event urged the government to equip local Kirana stores with a dedicated technology platform that would enable them to compete fairly with quick-commerce companies and operate on equal footing. They recognised the growing consumer demand for faster delivery, greater convenience, and competitive pricing, and affirmed their readiness to embrace digital tools, enhance efficiency, and elevate customer service. However, they emphasized that without proactive government intervention to balance the competitive landscape, small retailers will continue to struggle against the vast financial and technological advantages of large e-commerce platforms.
As a potential solution, the retailers proposed creating an Bharat Taxi like digital system where customer orders are routed to nearby Kirana shops, with the order going to the first store that accepts it. Such a platform, they suggested, could also include a customer-rating feature for participating Kirana stores, motivating them to maintain high service standards and fostering healthy competition within the local retail ecosystem.
Mr. Abhay Raj Mishra, Member & National Coordinator, Indian Sellers Collective and Honorary Spokesperson, FRAI, said, “Small retailers and kirana shopkeepers are facing an unprecedented challenge as e-commerce and quick-commerce platforms reshape the market. These enterprises, built over generations, are now struggling to survive against players with deep pockets and aggressive strategies. We believe the government must urgently step in to create a fair competitive environment and empower local retailers with the right technology. Platforms like ONDC show immense promise in restoring balance by giving small businesses greater visibility, digital access, and a level playing field. India’s retail future must protect entrepreneurship, livelihoods, and the neighbourhood stores that serve as the backbone of our communities.”
At the event, FRAI highlighted that a powerful step in empowering small retailers is through the government-backed ONDC (Open Network for Digital Commerce)—an initiative designed precisely to empower small retailers and democratise India’s digital commerce landscape. ONDC moves away from platform-centric monopolies by creating an open, interoperable network where any buyer and any seller can transact using any ONDC-compatible application. For kirana stores, this means greater visibility, access to a wider customer base, lower operating costs, and the freedom to choose different apps to list and sell their products. By providing a standardised digital infrastructure and eliminating dependence on a single dominant platform, ONDC fosters true digital inclusion.
According to FRAI, ONDC holds tremendous promise for transforming India’s retail ecosystem, and there is a strong opportunity to further enhance its support for the retail segment and benefit small merchants. This will require a multi-pronged approach. Firstly, by streamlining seller onboarding and offering practical, hands-on training, the network can empower local retailers to easily digitise their catalogues, manage inventory efficiently, and deliver orders with confidence. Continued focus on retailer enablement, smoother operational processes, and a more seamless consumer journey will help ONDC unlock its full potential as a powerful catalyst for inclusive growth in the retail sector.
Secondly, ONDC should also standardise service levels across buyer apps to ensure consistent delivery times, pricing transparency, and customer support. Thirdly, expanding partnerships with logistics providers can help improve fulfilment quality and reduce delivery failures. Fourthly, the network needs stronger incentives, such as lower commissions, promotional support, and visibility boosts, to attract and retain both sellers and buyers. Finally, a unified trust and rating system, backed by stricter compliance rules, can enhance credibility.
Through these steps, ONDC can further strengthen entrepreneurial independence and empower the livelihoods of lakhs of India’s small retailers and kirana stores.
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