**Uber Enters B2B Last-Mile Logistics in India with Uber Direct**
Uber has launched Uber Direct, a new white-label delivery service aimed at the business-to-business (B2B) last-mile logistics market in India. This initiative leverages the Open Network for Digital Commerce (ONDC) and positions Uber in direct competition with established logistics providers like Shadowfax, Delhivery, Ecom Express, Xpressbees, and Shiprocket, which cater to e-commerce companies and brands.
Unlike its competitors, which engage directly with both online and offline merchants, Uber Direct will exclusively fulfill orders for merchants registered on the ONDC platform, accessed through ONDC-integrated buyer applications. The service has commenced operations in Bengaluru, initially focusing on grocery deliveries for Zepto and KPN Farm Fresh, with plans to expand into food deliveries for popular quick-service restaurant (QSR) brands such as KFC, Burger King, Taco Bell, and Rebel Foods.
Prabhjeet Singh, head of Uber India, indicated that Uber Direct will initially utilize the company’s two-wheeler fleet, providing bike-taxi drivers with an additional income stream alongside Uber Courier, its B2B parcel service, and the consumer-facing Uber Bike Taxi service. Singh emphasized that the ONDC partnership transforms each Uber bike into a versatile asset, enabling drivers to alternate between transporting passengers, delivering consumer parcels, and managing B2B ONDC orders throughout the day.
The decision to start with two-wheelers is based on their efficiency and cost-effectiveness for enterprises. Singh noted that there may be future expansions to include various other vehicle types depending on the package requirements of businesses.
This launch occurs amid a regulatory scrutiny of bike-taxi services in Karnataka, where operations were suspended in June due to legal concerns under the Motor Vehicles Act. However, bike taxi services have since resumed on platforms like Uber, Rapido, and Ola following court interventions.
Uber currently boasts over 1.5 million drivers across various vehicle categories in India, although Singh did not disclose specific numbers for each category. He highlighted that Uber Bike is one of the fastest-growing segments of the company, with the addition of tens of thousands of two-wheeler drivers each month.
Uber Direct is not the first initiative to utilize the ONDC for logistics; rival Ola had previously offered food delivery through ONDC but has since withdrawn that service. Singh mentioned that ONDC is onboarding a diverse range of merchants, from large brands to mid-sized sellers, as consumer demand for faster delivery continues to rise.
**FAQ**
**What is Uber Direct?**
Uber Direct is a new B2B last-mile logistics service launched by Uber in India, utilizing the ONDC platform to fulfill orders for registered merchants.
