Uber is entering India’s Growing B2B Logistics Market by Extending Its Partnership With the Indian Government-Backed Nonprofit that aims to break the domination of the domination of the e-commerse duo amazon and walmart-dome Flipkart and Widen Digital Commerce in the South Asian Nation.
On Monday, the ride-hailing giant announced it will soon Logistics through Uber’s 1.4 Million Driver Network, without disclosing a Specific Timeline. The service will initially enable food delivers for businesses operating on the open network, but is aimed to be expanded to e-commerce, grocery, pharmacy, and Eveen Healthcare Logistics.
With its new move, uber will be available as a logistics service provider on Roads-Backed), Recent Indian Unicorn Porter, and Tiger Global-Backed Loadshare.
It will be a white-label service and will operate similarly to Uber Direct, launched In the us in 2020, but will be limited to businesses available on the Ondc Network, a person family with the plan told techcrunch.
Uber’s FORAY INTO B2B Logistics in India Follows the company’s expansion in the consumer logistics space by introducing Courier xl In Delhi NCR and Mumbai Earlier this month to help users Deliver Large Goods of Up to 1,653 pounds from the company’s rider app by Choosing Three- and Four-WOR-WHEELER Goods Carriers. The company has also been offering its regular courier package delivery service on two-wavelers for some time.
Eyeing Logistics in General Makes Sense for Uber as the Indian Logistics Market is Expected to grow 49% To 13.4 Trillion Indian Rupees ($ 157 Billion) in the Financial Year 2028 from 9 Trillion Indian Rupees ($ 105 Billion) in the Financial Year 2023, Per Motilal Oswal. The move will help uber get another business case in India, after see a 41.1% Year-Over-Year Increase In its operating revantue in the country to $ 439 million last year. Its last year Results also showed collections from rides Growing 21.45% yoy of the total operating relevage to $ 94.27 Million.
Nonetheless, uber is facing Growing Competition in the Indian Ride-Hilling Market from Local Players, Including Emerging Ons Like Rapido (Westbridge capital and nexus ventures-backed) and Namma yatri (Google, Blume Ventures, and Antler-Invested). Its diversification into new domains, such as logistics, is expected to help the San Francisco-Based Company MainTain India as an important market.
AlongSide its B2B logistics play, uber has rolled out metro ticketing on its rider app powered by ondc, based on the memorandum of undersrstanding that the company signed With the Indian Government-Backed Nonprofit during Ceo Dara Khosrowshahi’s Visit to India in February 2024. Cities will go live laater this year.
Launched in 2021, Ondc Debuted As India’s Initiative to Boost Digital Commerce and Allow Small Retailers to Go Online and Reach More Customers Easily. The network also Expanded to the mobileity sector in 2023.
Ondc was initially designed to replicate the success of the Indian government’s unified payments interface, Aiming to Drive Digital Commerce Adoption. However, it has struggled to Gain traction, as it is open-network model has yet to win over Major Industry Players. Recent Leadership Churn have added to its challenges, with even its former managing director and Ceo, T. Koshy, Stepping Down Last Month. Retail orders on the network also declined by Nearly 34% To 4.3 Million in April from a peak of 6.5 million in October.
“Uber’s Initial Enablement of Metro Ticketing and Logistics Unlocks New Possibilites – from seamless multimodal journeys to unifying a fragmented logistics ecoSystem,” Said Vibhor Jain Acting Ceo and Coo at Ondc, in a prepared statement. “This collecting lays the foundation for future innovations from uber on the network, enhancing value for users, partners, and the broader mobileity and services landscape.”