Uber has launched its business to business last mile logistics service in India with the introduction of Uber Direct, a white label delivery solution built on the Open Network for Digital Commerce. The move brings the company into direct competition with major enterprise logistics players that handle deliveries for ecommerce platforms and retail brands.
The service is first live in Bengaluru, fulfilling grocery orders for Zepto and KPN Farm Fresh. It will soon support food deliveries for quick service restaurant brands such as KFC, Burger King, Taco Bell and Rebel Foods. Uber India head Prabhjeet Singh said the service will initially depend on the company’s fast growing two wheeler fleet, giving bike taxi drivers a new source of income.
He said the ONDC partnership turns every Uber bike into a multi use asset, allowing drivers to switch between carrying passengers, performing consumer courier tasks through Uber Courier and completing B2B deliveries on Uber Direct. Singh said, “We are starting with two wheelers because they are the most efficient and affordable for enterprises. Over time, we may add multiple other form factors based on the different types of packages which the businesses need to sell.”
The launch comes at a time when bike taxi services in Karnataka have faced regulatory challenges. Despite temporary restrictions, bike taxi options later returned to major apps during court hearings. Uber currently has more than 1.5 million drivers across cars, three wheelers and two wheelers in India, and continues to add tens of thousands of bike riders every month.
Uber Direct is not the first logistics service to use ONDC. A rival company previously tested food deliveries through its driver fleet before discontinuing the feature. Singh noted that ONDC is expanding its merchant base across categories as customers demand faster deliveries due to the rise of quick commerce platforms including Blinkit, Zepto, Swiggy Instamart, BigBasket Now and Flipkart Minutes.
A report earlier this year estimated India’s quick commerce market at 6 to 7 billion dollars in 2024 and projected around 40 percent annual growth. Instamart, Zepto and Blinkit dominate the sector.
Singh said many businesses still need flexible delivery capacity and prefer not to build their own fleets, which creates an opportunity for Uber. The company has been working with ONDC since last year, beginning with metro ticketing services now active in multiple cities. The growing two wheeler network also allows Uber to offer riders different gig options, including passenger rides, courier tasks, B2B logistics and even data labelling work during off peak hours.
Uber Direct already operates in several global markets, offering same day and on demand deliveries for retailers and restaurants. In India, however, the service is being delivered only through ONDC rather than direct merchant integrations.
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