The Tata Group‘s superapp, Tata Neu, has launched its services in the food and beverage segment on the government-backed Open Network for Digital Commerce (ONDC). This pilot program encompasses over 540 pin codes in Delhi-NCR and 264 pin codes in Bengaluru.
The superapp made its debut less than a month ago, with magicpin as its technology service provider.
Continue Exploring: Tata Neu joins online food delivery race through ONDC integration, posing competition to Zomato and Swiggy
They also intend to expand to additional cities in May, according to sources. ONDC currently includes two Tata enterprises as sellers: the StarQuick grocery app and the online grocer BigBasket.
Neu, operating within Tata Digital, the conglomerate’s ecommerce division, marks the first consumer app from the diverse conglomerate to join ONDC.
Other buyer apps within the food and beverage category include magicpin, Mystore, Novopay, NStore, Pai Platforms, pincode, and Spicemoney.
Reports indicated that ONDC received 5,777,231 food and beverage orders between April 2023 and March of this year. In March alone, food and beverage orders made up 9.55% of the total monthly orders, which amounted to 7.68 million on ONDC.
Continue Exploring: ONDC surpasses 7.1 Million orders milestone in February since inception last year
Requests for comment went unanswered by Tata Digital, magicpin, and ONDC.
Although Tata Neu has been involved in segments such as grocery, medicines, electronics, fashion, money, payments, and travel since 2022, it lacked a significant presence in the food and beverage category. Its entry into ONDC is aimed at bolstering its position in this sector.
At present, ONDC boasts approximately 105,000 sellers operating outside the retail sphere, with the food and beverage sector holding a significant portion of this share.
Reports indicate that in its first year of operation, Neu, which encompasses electronics, grocery, and e-pharmacy, has struggled to establish robust consumer loyalty.
However, according to sources, Neu is unlikely to incorporate additional categories such as grocery onto ONDC. This decision stems from the potential competition it would pose to Tata group’s BigBasket and StarQuick grocery apps already present on ONDC.
Continue Exploring: ONDC disrupts food delivery landscape: 50,000 restaurants join platform, challenging Zomato and Swiggy dominance
