Uber eyes B2B logistics push in India through state-backed open commerce network

Uber enters the growing B2B Logistical Market in India by expanding its partnership with non -profit supported by the Indian government, which aims to break the dominance of the duo in the Amazon and Walmart e -commerce supported by Flipkart and expanding digital trade in South Asia.

On Monday, the giant horse riding company announced that it will soon launch the B2B Logistics service through the Open Digital trading Network (ONDC) to help companies on the network access to logistics services through the Uber driver network 1.4 million, without revealing a specific timetable. The service will initially enable food delivery to companies that operate on the open network, but aims to expand it to e -commerce, groceries, pharmacy and even logistical health care services.

Through its new movement, Uber will be available as a logistical service provider in ONDC, and compete with the likes of Shiprockket (Temasek and PayPal supported by PayPal), Shadowfax (TPG, Qualcomm Ventures, eight of the road -backed roads), last unicorn Porter, and Tiger Global.

It will be a white mark service and will work similar to Uber Direct, which was launched in the United States in 2020, but will be limited to the companies available on the ONDC network, according to a person familiar with the Techcrunch plan.

Uber’s France in B2B Logistics in India follow the company’s expansion in the field of consumer logistics by providing Course XL in Delhi NCR and Mumbai earlier this month to help users deliver large goods of up to 1,653 pounds from the company’s Rider Rider application. The company also provides regular mail packages in two wheels for some time.

Looking to logistics in general is logical for Uber, as the Indian logistics market is expected to grow by 49 % to 13.4 trillion Indian rupee ($ 157 billion) in the fiscal year 2028 from 9 trillion Indian rupee (105 billion dollars) in the fiscal year 2023, per motilateral Ozwal. This step will help Uber to obtain another work case in India, after witnessing an increase of 41.1 % on an annual basis in its operational revenues in the country to $ 439 million last year. The results of last year also showed groups of horse riding 21.45 % on an annual basis of total operating revenue to 94.27 million dollars.

However, Uber faces an increasing competition in the Indian horseback market from local players, including emerging players such as Rapido (WestBridge Capital, subsidized ventures) and Namma Yatri (Google, Blume Ventures, and Antler Iner). Its diversification is expected to help in new areas, such as logistics services, the company that is based in San Francisco to maintain India as an important market.

Besides the B2B Logistics, Uber launched the metro tickets on the Rider application that operates by ONDC, based on a memorandum of understanding that the company signed with the non -profit organization backed by the Indian government through the CEO of the Dara Khosrowshah Organization, will be available for the stability of Delhi Metro first later in these defects.

It was launched in 2021, ONDC first appeared as an India’s initiative to enhance digital trade and allow young retailers to connect to the Internet and access more easily customers. The network also expanded to the movement in 2023.

ONDC was initially designed to repeat the success of the unified payment interface of the Indian government, with the aim of promoting the adoption of digital trade. However, she fought for strength, because the open network model has not yet won the main players in the industry. The recent leadership added Churn to its challenges, even with the former administrative director and executive director, T. Koshy, stepped down last month. The retail orders on the network also decreased by about 34 % to 4.3 million in April from the peak of 6.5 million in October.

“The initial empowerment of the Uber for metro tickets and logistics opens new capabilities – from multimedia smooth trips to unifying a fragmented logistical ecosystem,” Vibhor Jain, Acting CEO of the Prosecutor and Coo at ONDC. “This cooperation places the basis of future innovations of Uber on the network, which enhances the value of users, partners and the broader scene of mobility and services.”