Uber has signed a memorandum of understanding with the Indian government-backed company aimed at making mobility and commerce more accessible across South Asia.
The ride-hailing giant announced Thursday that it will explore integration with the Open Network for Digital Commerce (ONDC) to expand the range of mobility services on its Uber app. At an event in Bangalore, Uber CEO Dara Khosrowshahi said Uber is “very interested in the open source technology stack and recognizes the opportunities it presents for everyone.” said.
“We are taking the first step through this MoU with ONDC to explore how we can accelerate our ambition to make Uber a platform that meets the daily transportation needs of every Indian. We're thrilled to be able to do this,” added Prabhjeet Singh, president of Uber India and South Asia, in a statement. .
TechCrunch has exclusively learned that Uber will initially integrate intercity bus ticketing and metro rail ticketing across India into the ONDC network as a buyer application.
ONDC is an ambitious initiative aimed at disrupting the fast-growing e-commerce and mobility sector in the country. Founded in 2021, ONDC aims to democratize online commerce by providing an open platform that can connect buyers and sellers across marketplaces, making it easier for small retailers to reach customers. I'll make it. Last year, ONDC expanded into the mobility space.
Despite ONDC's inroads, one of the major challenges facing this initiative is the lack of participation from major players. Companies like Amazon and Flipkart have expressed their intention to join the open network, but their involvement is limited so far.
“MTT (Mobility, Transport and Travel) is certainly a key area for us as open networks continue to evolve. The collaboration of different players on the network fosters innovation and new business models. T. Koshy, MD and CEO of ONDC, said in a statement. “Today's MoU is a major step forward and we hope to enable diverse mobility solutions that will benefit every Indian.”
ONDC aims to attract large companies and is also working to make its network autonomous. Koshy told TechCrunch in a recent interview that the ONDC board is discussing a model that would start charging marginal fees to some participants.
“It should be very minimal and it should go against the business that’s actually happening… It shouldn’t burden the small businesses that are going to start up,” he said, adding that the fee model should be It added that a final decision would be made within the month. It will be announced in a few months.
India is an important market for Uber, and the company continues to expand its services. The company, which competes with SoftBank-backed Ola in India, sold Uber Eats to local delivery giant Zomato in 2020. A cheerful Khosrowshahi joked on Thursday that he might consider re-entering the country's food delivery business.
India is one of the toughest markets, he said. “Indian customers are very demanding and don't want to pay anything,” he added.