Tata Group is set to venture into online food ordering through its super app Tata Neu using the Open Network for Digital Commerce (ONDC), according to MoneyControl.
The salt-to-steel conglomerate is gearing up for closed-user group trials in the next few days. However, it may take another month or longer before the feature is available to the public, said the report.
Gaurav Porwal, Senior Vice President at Tata Digital, is reportedly spearheading the ONDC project.
In April 2022, Tata Neu made its debut as the digital interface for Tata Group’s array of consumer brands–BigBasket for online groceries, Croma for electronics, Tata CliQ for fashion, 1MG for e-pharmacy, Starbucks for coffee, and the group’s budget airline, formerly AirAsia, now known as AIX Connect.
The 155-year-old conglomerate is now set to compete with new-age foodtech unicorns Zomato and Swiggy, which are said to control 95% of the online food delivery space. The aim is to create a ‘high-frequency use case’ that encourages consumers to regularly engage with the app, as per reports.
Some of the largest super apps like China’s WeChat or Gojek have a core proposition, such as instant messaging or ride hailing, with other services built on top of that.
Since the launch of ONDC, several players such as hyperlocal commerce platform Magicpin and PhonePe’s Pincode have started delivering food. In May last year, Magicpin said it was delivering up to 20,000 orders every day.
ONDC enables various players in the e-commerce ecosystem, including buyers, sellers, service providers, and intermediaries, to interact with each other to fulfil a business.
Tata Neu will play the business-to-consumer role of a buyer-side app on ONDC, thus eliminating the need to maintain a fleet of delivery riders or negotiate with restaurants to join the platform.
