Uber enters the growing B2B of India logistics, expanding its cooperation with the Indian government -backed non -profit organization, which aims to break the dominance of Amazon’s twin e -commerce and Walmart Flipkart and expand its digital trade in Ethnos.
On Monday, the Ride-Hailing giant announced that it will soon launch the B2B logistics service through the Open Network for Digital Commerce (ODDC) to help businesses on the Access Access network by custom through 1.4 million Uber drivers, without revealing a specific timetable. The service will first allow food deliveries for open network businesses, but aim to expand e -commerce, grocery, pharmacy and even supply health care.
With its new move, Uber will be available as a Logistics Service Provider at ODDC, competing with Shiprocket (Temasek and PayPal-Backed), Shadowfax (TPG, Qualcomm Ventures and eight roads), the recent Indian Unicorn Porter and Tiger Global Loadshare.
Will be a white label service and will work similar to Uber Direct; launched In the US in 2020, but will be limited to the available businesses on the ondc network, a person who is familiar with the plan, he told TechCrunch.
Uber’s invasion of the B2B logistics in India follows the company’s expansion into consumer logistics, entering Courier xl In Delhi NCR and Mumbai earlier this month to help users deliver large goods up to 1,653 pounds from the company’s Rider application by selecting three and four -wheel drive carriers. The company has also offered the regular courier delivery service to two vehicles for some time.
Supply monitoring generally makes sense for Uber, as the Indian logistics market is expected to increase 49% In 13.4 trillion Indian rupees ($ 157 billion) in the financial year 2028 out of 9 trillion Indian rupees ($ 105 billion) in the financial year 2023, per Motilal Oswal. Movement will help Uber get another business case in India after seeing one 41.1% increase on an annual basis In its operating revenue in the country at $ 439 million last year. Last year’s results also showed collections from walks increasing 21.45% annually for total operating revenue to $ 94.27 million.
Nevertheless, Uber faces increasing competition in the Indian driving market by local players, including emerging ones such as Rapido (Westbridge Capital and Nexus Ventures) and Namma Yatri (Google, Blume Ventures and Antler they have undertaken). Its differentiation in new sectors, such as logistics, is expected to help the San Francisco -based company keep India as an important market.
Along with the Logistics B2B game, Uber has released Metro Ticketing in the implementation of the ondc -powered rider, based on the Memorandum of Understanding that the company signed with Indian Covernual Nonprofit during CEO Dara Khosrowshahi on the visit to India in February 2024.
Launched in 2021, ondc debuted as India’s initiative to strengthen digital trade and will allow small retailers to connect online and easily reach customers. The network was also expanded to mobility in 2023.
The onDC was originally designed to reproduce the success of the Indian government’s consolidated payment interface, with the aim of promoting the adoption of digital trade. However, he has struggled to win an attraction, as the open network model has not yet won over major industry players. Recent leadership He has even added to his challenges, even former CEO and CEO, T. Koshy, resigned last month. Retail orders on the network as well declined by nearly 34% At 4.3 million in April from the top of 6.5 million in October.
“Uber’s initial activation of ticketing and Metro’s supply unlocks new possibilities – from seamless multimodal trips to integrate a fragmented logistics ecosystem,” said Vibhor Jain, Managing Director and COO on Onddc, in a prepared statement. “This collaboration lays the foundations for future innovations from Uber on the network, enhancing the value for users, partners and the wider landscape of mobility and services.”
