Hello followers! Today, let’s dive into Uber’s big move into India’s logistics scene with a fun twist.

Uber is stepping into the rapidly growing B2B logistics market in India by teaming up with a government-backed nonprofit. Their goal? Shake up the dominance of Amazon and Flipkart and boost digital trade across the nation.

Recently, Uber announced it will launch a new B2B logistics service via India’s Open Network for Digital Commerce (ONDC). This move will let businesses tap into Uber’s fleet of 1.4 million drivers to get on-demand logistics—initially for food deliveries, with plans to include e-commerce, groceries, pharmacies, and healthcare logistics down the line.

This new service will see Uber competing with local giants like Shiprocket, Shadowfax, Porter, and Loadshare. It will operate as a white-label service, similar to Uber Direct launched in the U.S. in 2020, but will be exclusive to businesses within ONDC’s network.

Uber’s foray into B2B logistics follows recent expansions, such as introducing Courier XL for large goods deliveries around Delhi NCR and Mumbai, helping with items up to 1653 pounds. They already offer other delivery services on two-wheelers, making logistics a natural step for their growth here, especially with India’s market expected to grow by 49% reaching $157 billion by 2028.

This strategic move aims to diversify Uber’s revenue in India, following a notable 41.1% YoY increase in operating revenue last year, totaling $439 million. However, intense local competition from startups like Rapido and Namma Yatri remains fierce, pushing Uber to broaden its service portfolio to stay ahead.

On top of logistics, Uber has rolled out metro ticketing on its app, powered by ONDC, starting with Delhi and expanding to other cities. ONDC was launched in 2021 to foster digital commerce for small retailers, but it has faced challenges, including leadership changes and declining activity. Despite hurdles, Uber’s integration with the network hints at promising future possibilities like seamless multimodal travel and unified logistics.

To wrap up, Uber’s effort to dive into India’s booming logistics landscape and digital economy showcases its commitment to remaining a key player in the region’s evolving market.