Tata Neu ventures into online food ordering through ONDC route

Tata Group’s super app, Tata Neu, is set to venture into online food ordering by leveraging the Open Network for Digital Commerce (ONDC). 

The move aims to create a high-frequency use case, encouraging regular app usage. 

By integrating food ordering, Tata Neu plans to cross-sell its diverse product categories, including apparel, jewelry, grocery, electronics, and flights. 

The ONDC integration facilitates access to a vast network of eateries, providing users with a broader range of choices.

Led by Gaurav Porwal, a senior vice president at Tata Digital, the ONDC project at Tata Neu is expected to undergo closed-user group trials before a broader public launch. 

The initiative aligns with Tata Neu’s strategy to enhance user engagement and capitalize on various product offerings within the app. 

Despite the app’s launch in April 2022, it has faced criticism for not meeting expectations, with concerns raised about the departure of key executives.

Tata Neu’s entry into online food ordering via ONDC ensures a cost-effective approach, as it operates as a buyer-side app, avoiding the need for an extensive delivery fleet or restaurant onboarding efforts. 

The collaboration with Zomato-backed Magicpin for ONDC integration further enhances Tata Neu’s capabilities, utilizing Magicpin as a technology service provider for the front end. 

The partnership is crucial in navigating the complex ONDC ecosystem and streamlining the integration process.

ONDC has evolved beyond food orders to encompass various retail purchases, including fashion, electronics, beauty, and home care. 

The government-backed network aims to curtail deep discounting and incentivize users to explore diverse product categories. 

With over 6.5 million transactions recorded in January, ONDC continues to gain traction, providing a platform for multiple sellers and creating a balanced e-commerce environment.