Uber is set to make a significant move into India's burgeoning B2B logistics market. The ride-hailing giant announced plans to launch a B2B logistics service through the Open Network for Digital Commerce (ONDC), a government-supported initiative aimed at democratizing digital commerce in the country. This new service will leverage Uber's extensive network of 1.4 million drivers to provide on-demand logistics solutions for businesses operating on the ONDC platform. Initially focusing on food deliveries, Uber intends to expand into sectors such as e-commerce, grocery, pharmacy, and healthcare logistics .

Read more: Would You Trust an AI Doctor? Meet World's first AI Doctor Clinic in Saudi Arabia 

Competing in a Crowded Market

By integrating with ONDC, Uber positions itself alongside established logistics players like Shiprocket, Shadowfax, Porter, and Loadshare. The service will operate as a white-label offering, similar to Uber Direct in the U.S., but exclusively available to businesses within the ONDC network. This move allows Uber to tap into India's rapidly growing logistics market, which is projected to reach ₹13.4 trillion ($157 billion) by the financial year 2028, up from ₹9 trillion ($105 billion) in 2023.

Click here to read: ReNew Power to Gambit ₹22,000 Cr That Could Change India’s Renewable Energy Game

Strategic Expansion Amidst Rising Competition

Uber's foray into B2B logistics follows its recent expansion in consumer logistics, including the introduction of Courier XL in Delhi NCR and Mumbai, catering to the delivery of large goods up to 1,653 pounds. The company has also been offering regular courier services on two-wheelers. These initiatives come as Uber faces increasing competition in India's ride-hailing market from local players like Rapido and Namma Yatri. Diversifying into logistics is a strategic move to maintain and grow its presence in one of its key markets.