Uber is strategically positioning itself to tap into India's rapidly growing B2B logistics market through the Open Network for Digital Commerce (ONDC), a government-backed initiative aimed at democratizing digital commerce. This move signifies Uber's commitment to expanding beyond ride-hailing and establishing a significant presence in the logistics sector.

By integrating with ONDC, Uber aims to provide businesses with on-demand logistics solutions, leveraging its extensive network of drivers. This initiative allows businesses to request logistics services from Uber's delivery network without needing their own dedicated fleet. Uber's B2B logistics service will initially focus on facilitating food deliveries for businesses affiliated with ONDC. However, the company intends to expand its services to encompass various other sectors, including e-commerce, groceries, pharmaceuticals, and healthcare logistics. As part of this evolution, Uber will become a logistics service provider on the ONDC platform, positioning itself against competitors such as Shiprocket and Shadowfax.

This strategic move follows an Memorandum of Understanding (MoU) signed in 2024 during Uber CEO Dara Khosrowshahi's visit to India, where Uber committed to collaborating with ONDC to advance the reach and impact of India's digital public goods. The integration marks Uber's first foray into India's pioneering digital public infrastructure and a major step forward in making public transport more connected.

The rollout of metro ticketing on the Uber app, powered by ONDC, starting with the Delhi Metro, is a tangible realization of that commitment, reinforcing Uber's mission to make urban mobility more inclusive, sustainable, and seamlessly connected. Three more cities across India are slated to go live in 2025.

Uber's entry into the B2B logistics market through ONDC has the potential to disrupt the existing landscape, challenging the dominance of major e-commerce players and widening the scope of digital commerce across India. The Open Network for Digital Commerce (ONDC) is designed to foster open, unbundled, and interoperable Open Networks.

Transport Corporation of India (TCI) has also integrated with the ONDC network. TCI is offering logistics services to businesses of all sizes, ensuring a seamless end-to-end delivery experience. TCI's extensive national network of 1,400 branches and 15 million square feet of warehousing space will enhance the delivery experience for businesses, streamline supply chain operations, reduce costs, and improve market reach, especially for the MSME sector.