2024-02-06 By Surbhi Chauhan General

Tata Neu Ventures into Food Ordering with ONDC: A Game-Changer in India's Super App Landscape

Tata Neu Ventures

Tata Neu, the versatile super app under the Tata Group's umbrella, is gearing up to make a groundbreaking entry into the online food ordering sector by harnessing the power of the Open Network for Digital Commerce (ONDC).

This move represents a significant milestone as Tata Neu becomes the first traditional Indian organisation to venture into the thriving billion-dollar food delivery industry. According to reports from Moneycontrol, Tata Neu's much-anticipated food ordering service is assured to commence closed-user group trials soon, with a public launch anticipated within the coming month or so.

The strategic viewpoint behind Tata Neu's foray into food ordering is twofold. Firstly, it aims to establish a "high-frequency use case" that will drive consistent user engagement, thereby enhancing the overall utility of the app. Secondly, this will enable Tata Neu to effectively cross-sell its diverse range of products spanning categories such as clothing, jewelry, groceries, electronics, and travel. Additionally, depending on user response, the app may eventually integrate with ONDC to encompass additional categories, further enriching the user experience.

One of the key advantage of partnering with ONDC is the unparalleled access it provides to a vast network of restaurants. While currently, the food category tab within the Tata Neu app primarily showcases menus from various restaurants at Taj hotels, the conglomerate's renowned hospitality brand, integration with ONDC will open doors to tens of thousands of restaurants already part of the network. Leveraging the formidable brand recognition of Tata, it's expected that a wealth of restaurants will eagerly sign up on the all new NEU SUPER APP.

In a market currently dominated by the duopoly of Swiggy and Zomato, accounting for over 95% of the market share, Tata Neu's collaboration with ONDC presents an alarming contender in the food delivery field.

Logistics support is another crucial aspect facilitated by ONDC. By registering as a buyer-side app on ONDC, Tata Neu stands to benefit from cost-effective entry into food ordering, as it won't necessitate deploying its own fleet of delivery riders. ONDC also extends third-party food delivery support to its clients, further streamlining the operational aspect. Tata Neu's collaboration with Magicpin, a technology service provider backed by Zomato, underscores its commitment to seamless integration with ONDC, reminiscent of its successful partnerships with industry giants like Paytm and Ola.

ONDC's inception in 2021 as a government-backed initiative supported by private entities has revolutionized the e-commerce landscape in India. Offering lower commissions compared to industry holders like Swiggy & Zomato, ONDC translates to improved profit margins for sellers and more competitive prices for consumers. The recent decision by Domino's to leverage the ONDC platform for deliveries in Delhi-NCR underscores the growing traction and appeal of ONDC among established players in the food industry.

The evolving offerings of ONDC, with food orders now account for around 35% of transactions, reflecting its expanding ecosystem. The addition of sellers across diverse categories such as fashion, electronics, beauty, and homecare has further enriched the platform's appeal. January witnessed a surge in transactions on ONDC, with 6.5 million recorded, including 3.5 million ride bookings on the Namma Yatri app and the remainder spread across platforms like Paytm, Snapdeal, Magicpin, and Ola.

In conclusion, Tata Neu's strategic collaboration with ONDC indicate a new era of innovation and convenience in India's super app landscape. With a comprehensive suite of offerings poised to disrupt the food delivery industry, Tata Neu stands as a formidable player, leveraging ONDC's expansive network and infrastructure to redefine the digital commerce experience for millions of users nationwide.