Uber Partners ONDC To Foray Into B2B Logistics

Ride-hailing giant Uber has tapped into the state-backed Open Network for Digital Commerce (ONDC) to foray into the B2B logistics segment.

Under the new offering, Uber will offer on-demand and scheduled delivery solutions to brands through its fleet of riders. Called Uber Direct, the new service has been positioned as a plug-and-play solution for companies.

“Orders are placed by users on a seller’s app or website, and the delivery is fulfilled by Uber Direct without the consumer interacting with Uber until the delivery partner arrives. This makes Uber Direct, powered by ONDC, a standardized, plug-and-play solution for enterprises that need reliable, flexible, and scalable delivery support,” said the ride-hailing giant in a statement.

Simply put, Uber Direct will fulfil an order placed by an ONDC customer’s seller app, without the need for a user to book the delivery separately.

The company also said that the new offering went live in Bengaluru yesterday, adding that its drivers have already begun fulfilling grocery deliveries for companies such as Zepto and KPN Farm Fresh. 

The ride-hailing juggernaut also plans to expand Uber Direct to the food delivery segment in the next “couple of weeks”, with an eye fulfilling deliveries for QSR chains such as KFC, Burger King, Taco Bell and Rebel Foods.

“…. The launch of… Uber Direct in Bangalore helps us bring alive our vision to help people ‘Go anywhere, Get anything’ and we are excited to build that at scale with ONDC. This is yet another important integration and we look forward to building more,” said Uber India and South Asia president Prabhjeet Singh.

On the same day, the ride-hailing giant also announced a partnership with Bengaluru Metro Rail Corporation Ltd. (BMRCL) and ONDC to launch metro ticketing on the Uber app in the city. With this, users can purchase QR-based metro tickets and access information related to the local metro on the Uber app.

“More metro integrations and Uber Direct city launches are planned for 2026 as Uber deepens its commitment to India,” said Uber in a statement. 

Meanwhile, the launch of Uber Direct pits the ride-hailing giant against homegrown logistics giants such as Shadowfax, Delhivery and Porter. While Uber’s service is currently only limited to ONDC users, a broader rollout could bring the pressure directly on the local new-age tech companies. 

Uber’s B2B foray comes at a time when the rise of quick commerce has created a new category for the logistics space. While many brands handle dark stores and supply chains, they outsource last mile delivery to 3PL partners to fulfil the demand for 10-30 minute deliveries. 

For instance, Shadowfax enables quick deliveries for Nykaa and Myntra, while Loadshare does the same for Amazon Now. Delhivery, too, has many D2C brands and retailers as its customers.

At the heart of all this is India’s last mile delivery market, which is projected to become a $24 Bn opportunity by 2033.