Tata Group is reportedly gearing up to enter the fiercely competitive online food delivery market, aiming to challenge the dominance of giants like Swiggy and Zomato. The conglomerate plans to leverage its upcoming ‘super app,’ Tata Neu, in conjunction with the government’s Open Network for Digital Commerce (ONDC).
Sources familiar with the matter revealed that Tata Neu intends to roll out its food delivery service soon, initially through closed-user group trials expected to commence in the coming days. However, the public launch may still be a month or more away.
The move marks Tata’s strategic effort to establish a ‘high-frequency use case’ for its app, aiming to attract consumers regularly. Furthermore, Tata Neu’s integration with ONDC is expected to provide access to a wide array of eateries already part of the network, potentially expanding its reach significantly.
Gaurav Porwal, Senior Vice President at Tata Digital, is reportedly leading the ONDC project within Tata Neu. The conglomerate’s digital division, which includes acquired consumer internet businesses like BigBasket and 1mg, is spearheading this initiative.
One notable advantage for Tata Neu in utilizing ONDC is its role as a buyer-side app, allowing it to minimize costs associated with deploying delivery riders or convincing restaurants to join the platform. In the ONDC ecosystem, various participants can handle different aspects of the e-commerce transaction process, including order management, logistics, and merchant onboarding.
Collaborating closely with Zomato-backed Magicpin, Tata Neu is leveraging the expertise of the Gurgaon-based startup as a technology service provider for front-end integration with ONDC. Magicpin, known for its extensive experience in ONDC integration, has facilitated the onboarding of over 50,000 eateries onto the network and serves multiple roles within ONDC, including technology service provider, seller-side app, and buyer-side app.
With these strategic manoeuvres, Tata Group aims to carve out a significant presence in the online food delivery sector, setting the stage for heightened competition in the market.