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Uber eyes B2B logistics push in India through state-backed open commerce network
Uber is entering India’s B2B logistics market by partnering with the government-backed ONDC to offer on-demand logistics services to businesses. Initially focusing on food deliveries, it plans to expand to various sectors. This move enables Uber to gain a foothold in India's growing logistics market, expected to reach $157 billion by 2028.
Key points
- Uber extends partnership with ONDC to launch B2B logistics services.
- Initial focus on food deliveries, with plans for e-commerce, grocery, and healthcare logistics.
- The Indian logistics market projected to grow significantly, offering new revenue opportunities for Uber.
- Competing with local and established players like Shiprocket and Shadowfax.
- Uber's revenue from rides in India increased 21.45% YoY, highlighting its growth potential in the region.
- Launch of metro ticketing on the Uber app is part of its collaboration with ONDC.
Why it matters
- The push into logistics aligns with global trends towards digital commerce and increased reliance on e-commerce solutions post-pandemic.
- Similar initiatives by other tech giants reflect the growing integration of diverse services within mobility and logistics sectors.
- ONDC's role aims to democratize online commerce in India, reminiscent of earlier initiatives like the Unified Payments Interface, although facing challenges in traction.
Uber's foray into India's B2B logistics market through ONDC presents significant growth opportunities, enabling it to diversify amid increasing competition in ride-hailing and logistics sectors.