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Uber Expands into India’s B2B Logistics Market via ONDC Integration, Challenging Established Players

Uber has formally entered India’s B2B logistics sector through the government-backed Open Network for Digital Commerce (ONDC), marking a significant expansion of the ride-hailing giant’s operations in the country. According to a report titled “Uber India Enters B2B Logistics via ONDC” published by StartupNews.fyi, Uber’s foray is focused on connecting businesses with third-party logistics providers via ONDC’s unified digital infrastructure, underscoring its ambitions to deepen its footprint in the Indian logistics ecosystem.

The move places Uber in direct competition with established B2B logistics players operating on the platform, such as LoadShare, Dunzo, and Shadowfax, as well as traditional freight operators. The decision signals Uber’s strategic push toward enterprise offerings at a time when India’s digital commerce landscape is undergoing a government-led transformation intended to reduce monopolistic control and increase interoperability among e-commerce service providers.

Uber’s B2B logistics capabilities will initially cater to intracity deliveries, enabling sellers and merchants to book freight transportation via digitally enabled logistics partners integrated with the ONDC network. This expansion complements Uber’s existing business model in India, where it already connects riders and food delivery users through its consumer-facing app.

The partnership with ONDC also reflects a broader effort by the Indian government to democratize digital commerce and logistics access for small and medium enterprises (SMEs). By leveraging ONDC’s interoperable framework, Uber gains entry into a market with growing demand for streamlined, tech-enabled supply chain solutions. This could significantly enhance the company’s reach among India’s fragmented merchant base, where logistics remains one of the primary operational challenges.

Commenting on the development, Prabhjeet Singh, President of Uber India and South Asia, emphasized the company’s commitment to innovation and infrastructure development. “Through ONDC, we aim to support India’s growing number of businesses while fostering a more open and inclusive digital economy,” Singh stated, as quoted by StartupNews.fyi.

As part of the initial rollout, Uber will not operate its own logistics fleet but will, instead, facilitate connections between businesses and existing logistics providers using the ONDC protocol to ensure real-time tracking, pricing transparency, and standardized service levels.

The announcement arrives amid increasing interest from private tech players in tapping into ONDC’s public infrastructure to circumvent traditional e-commerce gatekeepers. The initiative, launched with government backing in 2021, aspires to create a more competitive, inclusive marketplace for digital commerce by making services like payments, logistics, and cataloging interoperable and accessible to any buyer or seller on the network.

Uber’s entry could lend further legitimacy to ONDC’s platform while providing the company with a potentially scalable revenue stream in a logistics market that is projected to be worth $380 billion by 2025, according to industry estimates. The success of Uber’s venture will depend on its ability to establish operational reliability and logistics coordination in a notoriously complex Indian supply chain environment.

While Uber has experimented with logistics-related services globally — such as Uber Freight in North America and partnerships in other emerging markets — its integration with ONDC seems to be tailored specifically to India’s unique ecosystem, where regulatory support and digital public infrastructure are reshaping how commerce is conducted.

As the ONDC platform continues to mature, Uber’s participation could significantly influence the evolution of B2B logistics by introducing standardized frameworks and digital efficiencies at scale. For now, industry observers will be watching closely to see how the company adapts its global expertise to the localized complexities of Indian logistics.

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