Uber Expands into India's B2B Logistics Market via ONDC Partnership

Uber is making a strategic entry into India’s burgeoning B2B logistics market by extending its partnership with the Open Network for Digital Commerce (ONDC), a government-backed nonprofit initiative. ONDC aims to disrupt the dominance of major e-commerce players like Amazon and Flipkart by widening digital commerce access across India.

Uber plans to launch its B2B logistics service on ONDC, leveraging its 1.4 million driver network to provide on-demand logistics solutions. The initial focus will be on food deliveries for businesses on the open network, with future expansion into e-commerce, grocery, pharmacy, and healthcare logistics sectors.

This new service will operate as a white-label offering similar to Uber Direct in the U.S., but exclusively for businesses on the ONDC network. Uber’s entry intensifies competition with established Indian logistics providers such as Shiprocket, Shadowfax, Porter, and Loadshare.

Uber’s logistics expansion complements its recent launch of Courier XL, a service for delivering large goods in major Indian cities, and its existing two-wheeler courier services. This diversification aligns with projections that India’s logistics market will grow 49% to $157 billion by 2028.

Despite strong growth in ride-hailing revenue, Uber faces increasing competition from local players like Rapido and Namma Yatri. Expanding into B2B logistics offers Uber a new avenue to strengthen its foothold in India’s dynamic market.

In addition to logistics, Uber has integrated metro ticketing into its app through ONDC, starting with Delhi Metro and expanding to other cities later this year. This initiative supports seamless multimodal transport and enhances user convenience.

ONDC, launched in 2021, is India’s ambitious effort to democratize digital commerce by enabling small retailers to access online markets. While the network has faced challenges in adoption and leadership changes, partnerships like Uber’s bring renewed momentum and innovation potential.

Vibhor Jain, acting CEO and COO of ONDC, highlighted that Uber’s involvement unlocks new possibilities for unified logistics and seamless multimodal journeys, setting the stage for future innovations that benefit users, partners, and the broader mobility ecosystem.

Uber’s strategic expansion into India’s B2B logistics via ONDC exemplifies how technology platforms can leverage government-backed initiatives to foster inclusive growth and competitive markets. For businesses and developers, this signals opportunities to innovate within India’s rapidly evolving logistics and digital commerce sectors.