Tata Group is set to make its foray into online food ordering through its super app Tata Neu, utilizing the Open Network for Digital Commerce (ONDC), as reported by MoneyControl.
The salt-to-steel conglomerate is gearing up for closed-user group trials in the next few days, as reported. However, it may take another month or longer before the feature is available to the public.
According to reports, Gaurav Porwal, Senior Vice President at Tata Digital, is leading the ONDC project.
In April 2022, Tata Neu was introduced as the digital platform encompassing Tata Group’s range of consumer brands, including 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 rebranded as AIX Connect.
The 155-year-old conglomerate is poised to enter into competition with the new-age foodtech unicorns Zomato and Swiggy, reportedly dominating 95% of the online food delivery market. The objective is to establish a ‘high-frequency use case,’ encouraging consumers to engage with the app regularly, according to reports.
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Several major super apps, such as China’s WeChat or Gojek, have a central offering, such as instant messaging or ride-hailing, around which additional services are integrated.
Following the introduction of ONDC, numerous players like the hyperlocal commerce platform Magicpin and PhonePe’s Pincode have begun offering food delivery services. In May last year, Magicpin announced that it was handling up to 20,000 orders daily.
ONDC facilitates interactions among various participants in the e-commerce ecosystem, such as buyers, sellers, service providers, and intermediaries, enabling them to collaborate in fulfilling business needs.
Tata Neu will function as the business-to-consumer interface within ONDC, serving as a buyer-side application. This approach eliminates the necessity of managing a fleet of delivery riders or negotiating with restaurants to join the platform.
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