Uber Taps Into India’s B2B Logistics Market Through ONDC Partnership
May 19, 2025 | New Delhi, India – Uber is making a strategic push into India’s booming B2B logistics space by partnering with the Open Network for Digital Commerce (ONDC), a government-backed initiative designed to level the digital commerce playing field and reduce the dominance of giants like Amazon and Flipkart.
In an announcement on Monday, Uber confirmed it will soon offer on-demand logistics services for businesses via ONDC, enabling companies to access its expansive network of 1.4 million drivers across the country. The rollout will begin with food deliveries and later extend to e-commerce, grocery, pharmacy, and healthcare logistics, although a precise launch date has not yet been shared.
This white-label service will mirror the Uber Direct model introduced in the U.S. in 2020 but will be exclusively available to businesses onboard the ONDC platform.
Competing in a Crowded Logistics Landscape
By joining ONDC, Uber positions itself against established logistics providers like Shiprocket, Shadowfax, Porter, and Loadshare. The ride-hailing company is already active in the Indian consumer delivery segment with offerings like Courier XL, launched in Delhi NCR and Mumbai earlier this month, which enables large-package delivery via three- and four-wheeler vehicles.
Uber’s move is well-timed. According to Motilal Oswal, India’s logistics market is projected to grow by 49%, reaching ₹13.4 trillion ($157 billion) by FY2028, up from ₹9 trillion ($105 billion) in FY2023.
Strategic Diversification Amid Rising Competition
The B2B logistics push also helps Uber diversify its India operations amidst rising competition from local ride-hailing startups like Rapido and Namma Yatri. Uber reported a 41.1% year-over-year revenue increase in India last year, with ride collections contributing $94.27 million of its total $439 million operating revenue. Expanding into logistics offers a new revenue channel and solidifies its footprint in the Indian market.
Enhancing Urban Mobility with Metro Ticketing
Alongside logistics, Uber is enhancing its urban mobility offerings by launching metro ticketing services on its app, starting with Delhi Metro. This initiative, also powered by ONDC, stems from an MoU signed during Uber CEO Dara Khosrowshahi’s visit to India in early 2024. The service will expand to three additional cities later in the year.
The ONDC Mission and Challenges
ONDC was launched in 2021 to democratize digital commerce and emulate the success of India’s Unified Payments Interface (UPI). While it has made inroads into sectors like mobility and commerce, the platform faces hurdles such as declining retail orders—down from 6.5 million in October 2024 to 4.3 million in April 2025—and recent leadership changes, including the exit of its CEO T. Koshy.
Still, the Uber partnership could signal a turning point. “Uber’s metro ticketing and logistics enablement opens doors to a unified mobility and logistics ecosystem,” said Vibhor Jain, ONDC’s acting CEO and COO. “It paves the way for more innovation, enhancing the experience for users, businesses, and service providers alike.”
Final Thoughts
Uber’s integration with ONDC marks a pivotal evolution in India’s digital services landscape. By leveraging its established driver network and logistics know-how, Uber is poised to become a key player in B2B logistics—while supporting India’s broader vision for inclusive digital commerce.
