Beyond ICCT, Uber is already getting ready to supercharge its expansion in India. The company is working on a Business-to-Business (B2B) logistics service based on the ONDC’s shared infrastructure. This forward-thinking step provides sellers in the ONDC network with a seamless way to access on-demand logistics services. They can draw from the breadth of Uber’s nationwide workforce of 1.4 million drivers.
The ONDC, initiated in 2021, serves as India’s strategic platform to enhance digital commerce by enabling small retailers to transition online and reach a broader customer base. This initiative has recently expanded into the mobility sector, underscoring its commitment to driving digital commerce adoption across various industries. Uber’s new B2B logistics service would work very similarly to Uber Direct. Its white-label trucking service, launched in the U.S. in 2020, allows businesses to use Uber’s logistics network through their own platforms.
In recent months, the ONDC network has struggled with adoption. In April, retail orders on the platform fell by almost 34%. They fell to 4.3 million from a high of 6.5 million in October. Even with these new headwinds, Uber’s logistics service will create new enthusiasm for the ONDC. It will provide the foundational assistance for businesses addressing the frontiers of digital logistics.
Uber’s diversification into logistics is part of a broader strategy to maintain its presence and significance in the Indian market. Last year’s financial picture painted a rosy picture of ride collections. They continued to make an impressive comeback, increasing by 21.45% to $94.27 million in operating revenue. By moving into logistics, Uber is hoping to take a piece of this rapidly growing sector and become even more deeply ingrained in their market position.
With ONDC the government wants to replicate its success found in India’s Unified Payments Interface. It didn’t stop there — its invention of an open-source network changed the game for digital payments altogether. “Uber’s initial enablement of metro ticketing and logistics unlocks new possibilities — from seamless multimodal journeys to unifying a fragmented logistics ecosystem,” stated Vibhor Jain, the acting CEO and COO at ONDC. This case exemplifies the benefits that can be realized by bringing all of one’s services into the same network.
Recently, Uber entered B2B logistics through ONDC. They hope to leverage their well established infrastructure and driver network with growing demand from businesses for more efficient logistics solutions. This type of collaborative initiative is right in line with ONDC’s goals. It further allows Uber to establish itself as a leader in helping small retailers grow and enhance their productivity.
Leave a Reply