Uber Plans Major B2B Logistics Expansion in India via Government-Backed ONDC

News Desk GU360

3 days ago

Uber is preparing a strategic push into India’s B2B logistics sector through integration with the Open Network for Digital Commerce (ONDC), a state-backed initiative revolutionizing the country’s digital trade ecosystem. The move signals Uber’s ambition to diversify beyond ride-hailing and challenge established players like Delhivery and Porter in India’s booming $300B logistics market.

Uber’s ONDC Logistics Play: Key Details

1. The ONDC Advantage

✔ Access to 12M+ SMEs on the government’s open network
✔ Interoperability with existing e-commerce/logistics players
✔ Lower customer acquisition costs vs. standalone apps

2. Service Offerings

🚚 Uber Connect B2B (same-day urban deliveries)
🚛 Uber Freight Lite (medium-haul trucking for MSMEs)
📦 Warehousing integrations via ONDC partners

3. Tech Differentiators

✔ Dynamic pricing algorithms adapted from surge pricing
✔ Real-time GST/tax compliance automation
✔ Multi-modal transport (2-wheelers to trucks)

Why India? Why Now?

ONDC’s rapid growth (processed 8M+ transactions/month)
Post-Covid MSME digitization wave
Uber’s declining ride-hailing margins necessitating new revenue streams

“This is about building the rails for India’s next-gen commerce,” said Prabhjeet Singh, Uber India President.

Competitive Landscape

Uber will face off against:
📦 Delhivery (established logistics leader)
🛵 Porter (intra-city specialist)
🔄 Shadowfax (quick commerce backbone)

Analysts note Uber’s driver network and tech stack give it unique advantages.