Uber is officially stepping into India’s growing B2B logistics sector by integrating with the Open Network for Digital Commerce (ONDC). This move aligns the global ride-hailing firm with India’s public digital infrastructure push, aiming to decentralize digital commerce and reduce reliance on e-commerce giants Amazon and Walmart-backed Flipkart.
Food Delivery First, E-Commerce and Healthcare to Follow
On Monday, Uber announced its upcoming launch as a logistics service provider on ONDC. This new integration will initially allow food deliveries for businesses on the open network. The company plans to later expand into other verticals such as e-commerce, grocery, pharmacy, and healthcare logistics. However, Uber did not provide a specific launch date.
Uber Will Operate a White-Label B2B Service
The service will operate under a white-label model, similar to Uber Direct, launched in the United States in 2020. Unlike Uber’s consumer-facing delivery offerings, this B2B service will be exclusive to merchants on ONDC. It leverages Uber’s existing fleet of 1.4 million drivers in India to offer on-demand logistics to participating businesses.
A person familiar with the development told TechCrunch that this offering will be separate from Uber’s main ride-hailing app. It will function solely as a backend logistics partner for businesses operating through ONDC’s platform.
A New Turnkey Logistics Partner on the ONDC Network
The service positions Uber alongside Shiprocket, Shadowfax, Porter, and Loadshare as a turnkey logistics partner for ONDC merchants. These firms are already deeply integrated into the ONDC ecosystem and have significant venture capital backing, including investments from Temasek, PayPal, Qualcomm Ventures, Tiger Global, and TPG.
Courier XL Shows Uber’s Broader Logistics Intentions
Uber’s growing interest in logistics is not sudden. Earlier this month, it launched Courier XL in Delhi NCR and Mumbai to facilitate the delivery of large goods weighing up to 1,653 pounds. This feature is part of its rider app and utilizes both three- and four-wheeler carriers. It has also been offering a two-wheeler Courier delivery service in India for some time.
India’s Booming Logistics Sector Offers High Potential
Expanding into B2B logistics aligns well with the company’s long-term India strategy. India’s logistics market is expected to grow from ₹9 trillion ($105 billion) in FY 2023 to ₹13.4 trillion ($157 billion) by FY 2028, according to Motilal Oswal.
For the company, this could create a stable revenue stream in one of its fastest-growing international markets. Last year, Uber reported a 41.1% year-over-year jump in operating revenue in India, reaching $439 million. Of this, collections from rides alone rose 21.45% to $94.27 million.
Metro Ticketing Also Goes Live via Uber App
Alongside its logistics move, Uber has also taken steps to integrate public transport into its app. In line with a February 2024 MoU with the Indian government-backed ONDC nonprofit, Uber now offers Delhi Metro ticketing through its rider app. The feature will expand to three more Indian cities later this year.
ONDC Sees Uber’s Entry as a Future-Shaping Move
“Uber’s initial enablement of metro ticketing and logistics unlocks new possibilities — from seamless multimodal journeys to unifying a fragmented logistics ecosystem,” said Vibhor Jain, acting CEO and COO at ONDC, in a statement. “This collaboration lays the foundation for future innovations from Uber on the network, enhancing value for users, partners, and the broader mobility and services landscape.”
Uber Is Betting on ONDC to Scale in India
By plugging into India’s open digital commerce architecture, Uber is not just testing new waters but making a calculated move to deepen its presence in a rapidly digitizing market. The coming months will show whether the company can scale this B2B logistics venture in a fragmented yet opportunity-rich ecosystem.
