Uber Launches B2B Logistics in India Through ONDC to Disrupt Digital Commerce
Looking to understand Uber’s entry into India’s B2B logistics space and what it means for the digital commerce ecosystem? Here's what you need to know: Uber is officially stepping into India's rapidly growing B2B logistics market through a strategic partnership with ONDC (Open Network for Digital Commerce) — a government-backed initiative aiming to democratize digital commerce and reduce the dominance of Amazon and Flipkart. This move positions Uber as a serious player in last-mile delivery and enterprise logistics, making it easier for businesses to access on-demand, cost-effective logistics services using Uber’s vast driver network.
On May 19, Uber announced it will begin offering B2B logistics services via ONDC, allowing businesses on the network to leverage Uber’s 1.4 million-strong driver fleet for on-demand delivery. While the rollout will initially focus on food deliveries, plans are underway to expand the service to cover e-commerce, grocery, pharmacy, and even healthcare logistics —
This initiative mirrors Uber Direct, the company's white-label delivery solution launched in the U.S. in 2020. However, in India, the service will be exclusive to businesses operating within the ONDC framework. With this, Uber joins a competitive logistics landscape, taking on well-funded players like Shiprocket, Shadowfax, Porter, and LoadShare, all of whom are vying for dominance in India's B2B delivery sector.
Tapping Into India’s Booming Logistics Market
Uber’s logistics expansion couldn’t be better timed. According to Motilal Oswal, the Indian logistics industry is set to grow 49%, reaching ₹13.4 trillion ($157 billion) by FY 2028. With the launch of Courier XL for heavy goods in Delhi NCR and Mumbai, alongside its two-wheeler courier service, Uber is signaling a long-term commitment to solving urban logistics challenges.
Last year, Uber's India business posted $439 million in revenue, a 41.1% YoY increase, with ride collections alone accounting for $94.27 million. As Uber looks to diversify and mitigate risks from rising competition in ride-hailing — from platforms like Rapido and Namma Yatri — logistics provides a high-margin opportunity aligned with scalable tech infrastructure.
Boosting Multimodal Travel and E-Governance Integration
Beyond logistics, Uber is integrating deeper into India’s mobility ecosystem. As part of its collaboration with ONDC, Uber has rolled out metro ticketing through its app, starting with Delhi Metro. Additional cities are expected to follow, further enhancing Uber’s role in enabling seamless multimodal travel and public-private mobility solutions — keywords that appeal to advertisers in the urban mobility, transport tech, and smart infrastructure verticals.
This partnership builds on a memorandum of understanding signed during Uber CEO Dara Khosrowshahi’s visit to India in February 2024. It aligns with the Indian government’s broader mission to replicate the success of UPI (Unified Payments Interface) in digital commerce by leveraging open network protocols.
Challenges Ahead for ONDC and Opportunities for Uber
While the ONDC model promises to open doors for small retailers and local sellers, it has faced adoption hurdles. Monthly retail orders fell nearly 34% from 6.5 million in October to 4.3 million in April, and recent leadership changes — including the resignation of CEO T. Koshy — have added uncertainty. Despite this, Uber’s involvement brings renewed energy and credibility to the initiative.
According to ONDC COO Vibhor Jain, “Uber’s enablement of logistics and metro ticketing unlocks new possibilities — from unifying a fragmented logistics ecosystem to enabling efficient multimodal journeys.” The collaboration not only strengthens ONDC’s platform but also sets the stage for future innovations that could include integrations with AI-driven route optimization, hyperlocal delivery, and enterprise mobility solutions — all highly monetizable content areas.
Uber’s Logistics Bet Could Be a Game-Changer in India
With a strategic focus on enterprise logistics, public infrastructure integration, and digital commerce democratization, Uber is positioning itself to be a core logistics service provider in India’s emerging digital economy. Its ONDC partnership reflects a broader pivot towards high-growth, high-margin verticals in the face of mounting competition in ride-hailing.
For businesses, investors, and digital commerce players alike, Uber’s move signals that the future of logistics in India is not only scalable — it’s becoming smarter, more accessible, and increasingly driven by platforms ready to serve the next billion users.
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