Uber Says It’s Exploring Integrating With India’s ONDC

(CTN News) – A memorandum of understanding has been signed between Uber and an Indian government-backed firm aimed at improving mobility and commerce across South Asia.

Uber announced Thursday that it will explore integrations with Open Network for Digital Commerce (ONDC) in order to expand the range of mobility services it offers via its app.

Dara Khosrowshahi, Uber’s chief executive, stated at an event in Bengaluru that Uber “views open source tech stacks with a lot of interest and recognizes the opportunities that they bring for everyone.”

In a statement, Prabhjeet Singh, the President of Uber India and South Asia, commented, “We are delighted to take our first step through this MoU with ONDC to explore how we can accelerate our ambition to become a platform that meets every Indian’s daily mobility needs.”

TechCrunch has exclusively learned that Uber will integrate on the ONDC network as a buyer application for intercity bus ticketing and metro rail ticketing across India.

ONDC has embarked on an ambitious initiative in an attempt to disrupt the fast-growing e-commerce and mobility sectors of the country. Founded in 2021, ONDC aims to democratize online commerce by offering a platform that connects buyers and sellers across markets, allowing even small retailers to reach a larger audience. During last year’s fiscal year, ONDC expanded its operations to include the mobility industry.

The lack of participation from big names has been one of the major challenges for ONDC even as it is making inroads. Amazon and Flipkart have expressed their intention to participate in the open network, but so far their engagement has been limited.

MTT (mobility, transport, and travel) is undoubtedly a critical sector for the Open Network, as it is constantly evolving.

T Koshy, MD and CEO of ONDC, said that the network promotes innovation and new business models. We hope that today’s Memorandum of Understanding will lead to the development of a diverse range of mobility solutions that can be beneficial to all Indians.”

Furthermore, ONDC is working to make the network self-sustaining in order to attract big companies. In a recent interview, Koshy told TechCrunch the ONDC board is considering charging marginal fees to some participants.

In his statement, he stated that the fee model would be finalized in a month and announced in a few months. However, he noted that it should be very marginal and not put a burden on small businesses.

Uber continues to expand its offerings in India,

One of its key markets. Uber Eats, which competes with SoftBank-backed Ola in India, was sold to local delivery giant Zomato in 2020. On Thursday, Khosrowshahi joked that he might reenter the food delivery business.

Among the toughest markets out there is India, he said. According to him, “Indian customers are so demanding that they don’t want to pay for anything.”

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