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American ride-hailing giant Uber, which battles with Ola in the Indian market, today said it has partnered with the Indian government-backed Open Network for Digital Commerce (ONDC) as it aims to broaden its mobility services across the country.
Uber said it is committed to offering safe, affordable, and reliable transportation options to the Indian populace.
Expanding mobility services
The integration with ONDC will help Uber diversify its offerings on its app, introducing intercity bus and metro rail ticketing as initial steps. This will not just enhance expansion but also contribute to the broader vision of transforming India's mobility and commerce sectors, Uber said in a statement.
At an event in Bengaluru, Uber’s CEO Dara Khosrowshahi said the company "views open source tech stacks with a lot of interest and recognizes the opportunities they bring for everyone"
Democratizing digital commerce
Both Uber and ONDC are focused on democratizing digital commerce and making mobility solutions accessible to every Indian, as per the company's statement.
T Koshy, MD & CEO of ONDC, Said, “As the Open Network is continuously evolving, MTT (Mobility, Transport and Travel) is certainly a critical sector for us. Different players together on the Network foster innovation and newer business models. Today’s MoU is a major step forward, and one we hope will enable a diverse range of mobility solutions to benefit every Indian.”
ONDC is also exploring sustainability models, including the introduction of marginal fees for participants, to ensure the network's long-term viability.
Uber presence in India
Currently, Uber operates in 125 cities across a range of different vehicle types and has 900,000 Indian drivers on its platform. However, Uber still faces tough competition from rivals, including Bhavish Aggarwal's Ola Cabs and Bengaluru-based Rapido.
Notably, India is a key market for Uber, and the company is continually expanding its offerings for Indian consumers. Dara acknowledged that India is one of the toughest markets to penetrate. The “Indian customer is so demanding and doesn’t want to pay for anything,” he said.