Tata Neu, the super app from Tata Group, is set to expand its services by venturing into online food ordering through the Open Network for Digital Commerce (ONDC). This strategic move is aimed at creating a high-frequency use case, encouraging regular app usage while also cross-selling various product categories available on Tata Neu.
The integration of food ordering within the app will allow users to access a broad network of eateries, offering a diverse range of choices. This initiative aligns with Tata Neu’s broader strategy to enhance user engagement and capitalize on the varied product offerings available, including apparel, jewelry, grocery, electronics, and flights.
Gaurav Porwal, a senior vice president at Tata Digital, is leading the ONDC project at Tata Neu. The upcoming closed-user group trials will precede a broader public launch, showcasing Tata Neu’s commitment to refining the user experience.
Despite facing criticism since its launch in April 2022, Tata Neu aims to address concerns by entering the online food ordering segment via ONDC. This approach ensures a cost-effective model, operating as a buyer-side app without the need for an extensive delivery fleet or onboarding efforts for restaurants.
The collaboration with Magicpin, backed by Zomato, for ONDC integration enhances Tata Neu’s capabilities. Magicpin serves as a technology service provider for the front end, facilitating a seamless integration process and providing valuable expertise in navigating the complex ONDC ecosystem.
ONDC, originally designed for food orders, has evolved into a platform for various retail purchases, including fashion, electronics, beauty, and home care. The government-backed network aims to curb deep discounting practices and encourage users to explore diverse product categories. With over 6.5 million transactions recorded in January, ONDC continues to gain traction, fostering a balanced e-commerce environment for multiple sellers.
