Tata Neu Will Enter The Food Delivery Business And Join ONDC To Take On Zomato And Swiggy

According to a Moneycontrol story citing four persons familiar of the activities, Tata Neu, the flagship app of salt-to-software giant Tata, is getting ready to join the online meal ordering industry by riding on the Open Network for Digital Commerce (ONDC).

“In the next days, it’s probably going to be released for closed-user group testing. However, it can still be a month or more before the function is available to the general public, one of the respondents said, as per the article.

According to a second source cited in the Moneycontrol post, the goal of getting into the meal delivery business is to create a “high-frequency use case” that would entice users to return to the app on a frequent basis. The source said, “This will give Tata Neu an opportunity to cross-sell its other products on the app — across categories like apparel, jewellery, groceries, electronics, flights, and more.”

Food is now available as an option on the Tata Neu app. Nevertheless, it also displays menus from Taj and other restaurants owned by the Tata group. Food selections from several restaurants located around cities will be available on the app after the ONDC integration.

At the moment, Zomato and Swiggy have more than 95% of the market for meal delivery services.