Uber Expands into India’s B2B Logistics Market
Uber is making a strategic move into India’s growing B2B logistics market by extending its partnership with the Indian government-backed nonprofit organization. The aim is to disrupt the dominance of e-commerce giants like Amazon and Walmart-backed Flipkart, while also expanding digital commerce in the South Asian nation.
The ride-hailing giant recently announced its plans to launch a B2B logistics service through the Open Network for Digital Commerce (ONDC). This service will allow businesses on the network to access on-demand logistics through Uber’s extensive network of 1.4 million drivers. Initially focused on food deliveries, the service is expected to expand to accommodate e-commerce, grocery, pharmacy, and healthcare logistics.
Uber will be joining the likes of other logistics service providers on the ONDC platform, such as Shiprocket, Shadowfax, Porter, and Loadshare. The service will operate as a white-label offering, similar to Uber Direct launched in the U.S. in 2020, catering specifically to businesses on the ONDC network.
Expanding into B2B logistics is a strategic move for Uber as the Indian logistics market is projected to grow significantly in the coming years. With a 49% expected growth to 13.4 trillion Indian rupees by 2028, Uber sees an opportunity to tap into this lucrative market and diversify its revenue streams in India.
While facing stiff competition in the Indian ride-hailing market, Uber’s foray into new domains like logistics will help the company maintain its foothold in the country. In addition to B2B logistics, Uber has also introduced metro ticketing on its rider app powered by ONDC, further expanding its services to cater to diverse customer needs.
Launched in 2021, ONDC was designed to boost digital commerce in India and enable small retailers to go online. Despite facing challenges and leadership changes, ONDC continues to evolve and offer new opportunities for businesses to thrive in the digital economy.
Overall, Uber’s expansion into B2B logistics and collaboration with ONDC signals a new chapter in the company’s growth strategy in India. By leveraging its extensive network and innovative solutions, Uber aims to drive value for users, partners, and the broader mobility and services landscape in the region.
