Uber to offer logistics services through ONDC network
Ride-hailing company
Uber
is set to roll out B2B logistics through the government-backed Open Network for
Digital Commerce
(ONDC) network, offering on-demand delivery service to businesses.
The service will begin with food deliveries and later extend to sectors such as ecommerce, grocery, pharmaceuticals, and healthcare logistics, the company said on Monday.
Its rival Ola and hyperlocal ecommerce startup Magicpin are already active in the food and beverage (F&B) segment on ONDC. Magicpin's quick delivery offering, MagicNow, currently accounts for 13% of all food delivery orders on the platform, with plans to increase this share to 20% in the coming months.
Ola also provides
logistics-as-a-service
through the
ONDC network
.
Uber had earlier entered the food delivery business in India with Uber Eats, but it sold its operations to food delivery platform
Zomato
for around $350 million (Rs 2,485 crore) in 2020.
Uber has also partnered with ONDC to offer metro ticket booking through its app, starting with Delhi Metro Rail Corporation (DMRC) tickets.
The service will soon be extended to three more cities in India, said Prabhjeet Singh, president of Uber India & South Asia, without disclosing further details.
'ONDC's protocol, which is now live, scaled, tested, and reliable, enables us to use it to go live with DMRC faster, with a far more reliable infrastructure, and make it available at scale much quicker than we could have otherwise,' he said.
Enabling metro tickets on the Uber network will also attract new customers to the platform, Singh said.
Vibhor Jain, acting chief executive and COO of ONDC, said, 'As a global platform, Uber's initial enablement of metro ticketing and logistics unlocks new possibilities — from seamless multimodal journeys to unifying a fragmented logistics ecosystem.'
Jain was appointed as acting CEO of ONDC last week following the resignation of former CEO T Koshy on April 9.
DMRC recently partnered with ONDC, enabling commuters to book metro tickets through several consumer apps including Rapido and Namma Yatri.
The mobility segment of ONDC has seen steady growth, alongside an increase in the logistics sector. In February, ONDC recorded 8.1 million transactions in the mobility category, marking a 47% rise from 5.5 million orders in October 2024.
Uber, which competes with Ola Cabs, Rapido, and others, currently offers ride-hailing services on four-wheelers, autorickshaws, two-wheeler taxis, and buses operated under Uber Shuttle, in addition to hyperlocal deliveries. Earlier this month, it launched Courier XL, a service that expands its logistics product Courier, to enable deliveries of large goods.
Earlier, ET had reported that ride-hailing app Rapido is in talks with restaurateurs to introduce food delivery as a service on its platform, with a pilot programme expected to launch soon in Bengaluru.
Uber, which operates in more than 125 cities across India, has over 1.4 million monthly active drivers in the country, making it the company's third-largest market. According to Uber's chief technology officer Praveen Neppalli Naga, the platform facilitated over a billion trips across India in 2024.
Uber saw its operating revenue in India grow by 41% in the fiscal year ended March 31, 2024, to touch Rs 3,762 crore. The company managed to reduce its losses on the back of an improvement in its ride-hailing services and growth in its support and service operations.
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