Uber (NYSE:UBER) is set to embark on a new initiative focusing on business-to-business logistics in India. The collaboration with the Indian government’s Open Network for Digital Commerce (ONDC) aims to provide seamless, on-demand logistics services across various sectors. This expansion highlights Uber’s growing role in India’s digital commerce landscape, leveraging ONDC’s platform to enhance service accessibility for small and medium-sized enterprises in a competitive market.
Past efforts of Uber in India have primarily centered around ride-hailing and food delivery services. However, the company’s new focus on a logistics venture marks a shift towards more diversified service offerings. Initially, Uber Direct, which launched in the United States, provided a blueprint for its logistics operations, allowing businesses to access a broad range of delivery services. Now, integrating a similar model with the ONDC network seeks to streamline logistics for participating businesses.
What Does Uber’s Collaboration with ONDC Entail?
The collaboration aims to bring Uber’s logistics capabilities to businesses included in the ONDC network. Initially starting with food deliveries, the plan is to eventually cover logistics for eCommerce, groceries, pharmacies, and healthcare sectors. This initiative supports ONDC’s mission to facilitate digital commerce in India by making it easier for small businesses to operate online. Aligning with ONDC’s objectives, the logistics service intends to offer a robust public digital infrastructure to level the playing field across industries.
How Will Uber’s Logistics Service Function in India?
Uber will provide logistics services using a model similar to its Uber Direct service from the U.S. Yet, unlike the broader North American services, the Indian venture will specifically cater to businesses within the ONDC network. This move will allow small and medium enterprises to tap into efficient logistics solutions, fostering growth and improving service delivery capabilities.
In addition to logistics services, Uber’s collaboration with ONDC has facilitated other offerings. The Uber app now enables Indians to book tickets directly for the Delhi Metro, simplifying access to the city’s largest urban transit system. ONDC views this as a step towards making public transport more user-friendly and accessible through digital solutions.
The ONDC, established in 2022, aims to build a sustainable digital infrastructure to boost India’s digital commerce. In its inaugural year, the network expanded rapidly to include over 45 network participants, handling an impressive daily retail order volume across 400 cities. This growth underlines the potential impact of Uber’s new logistics push in collaboration with ONDC.
This logistics venture can enhance Uber’s brand presence in India and elevate digital commerce accessibility, mirroring its past accomplishments in other sectors. As Uber delves deeper into the logistics domain, its collaboration with ONDC holds promise for businesses eager to leverage digital solutions for operational efficacy.
India’s B2B logistics space is an ever-evolving landscape ripe with opportunities. With Uber’s proven logistics capabilities and ONDC’s established network, the potential to reshape how logistics services are offered and consumed is substantial. This collaboration could potentially redefine service parameters in the nation’s logistics sector, underpinning an era of interconnectivity and operational fluidity for businesses.
