Uber Taps Into India’s B2B Logistics Market Through ONDC Partnership
- Uber will launch a B2B logistics service through ONDC, starting with food deliveries and expanding to other sectors.
- India’s logistics market is projected to grow from ₹9 trillion in FY 2023 to ₹13.4 trillion by FY 2028.
In a strategic shift, Uber is making a significant push into India’s burgeoning B2B logistics sector by partnering with the Indian government-backed Open Network for Digital Commerce (ONDC).
The move positions the ride-hailing giant as a logistics service provider within the state-supported nonprofit’s ecosystem, aimed at challenging the e-commerce duopoly of Amazon and Flipkart and democratising digital commerce access in India.
White-Label Service to Launch Soon
Uber announced on Monday that it would soon roll out its B2B logistics services via ONDC, though no specific timeline was revealed.
The initial offering will focus on food deliveries for businesses active on the network, with plans to extend into e-commerce, groceries, pharmacy, and healthcare logistics.
Operating as a white-label service, it will mirror Uber Direct, launched in the U.S. in 2020, but will be available exclusively to ONDC-participating businesses.
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Uber’s entry will place it in direct competition with other major logistics players such as Shiprocket (backed by Temasek and PayPal), Shadowfax (supported by TPG, Qualcomm Ventures, and Eight Roads), Indian unicorn Porter, and LoadShare, which counts Tiger Global among its investors.
The timing aligns with a projected surge in India’s logistics sector, expected to grow by 49%—from ₹9 trillion ($105 billion) in FY 2023 to ₹13.4 trillion ($157 billion) by FY 2028, according to Motilal Oswal.
Uber’s pivot also comes after the launch of Courier XL in Delhi NCR and Mumbai earlier this month, targeting large-goods delivery via three- and four-wheeler carriers.
With a 41.1% year-over-year growth in its India revenue to $439 million and increasing local competition from ride-hailing rivals like Rapido and Namma Yatri, Uber’s diversification into logistics marks a critical evolution in maintaining its stronghold in the Indian market.
Edited by Annette George
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