You may soon book Uber ride through Tata's super app
What's the story
Tata Group is said to be in talks with Uber for a strategic partnership aimed at boosting traffic and subscribers on Tata's super app, Tata Neu, according to The Economic Times. The collaboration could involve aligning Uber's services as an 'anchor app' within Tata Neu. Tata Group is looking at ways to bring more users to the app frequently to cross-sell its other products in categories such as clothing, jewelry, groceries, electronics, and travel.
Addressing stagnation
Tata Neu seeks to address stagnation in user growth
Tata Neu, part of Tata Digital, aims to fulfill 50% of an average customer's daily, monthly, and yearly needs. However, it faces challenges like stagnant user growth and low customer engagement. Partnering with Uber could help overcome these issues by attracting daily users to Tata Neu and then gradually expanding its product offerings. Tata has invested over $2 billion in the Neu platform, which has reportedly reached 60 million installs.
Past meetings
CEO meetings and potential alliances
Earlier this year, Uber CEO Dara Khosrowshahi and Tata Sons Chairman N Chandrasekaran met in Davos, with further discussions expected during Khosrowshahi's upcoming visit to India. The exact terms of the partnership are still being negotiated, and there's no guarantee of a final agreement. Khosrowshahi has diversified Uber's services into areas like grocery delivery and high-margin advertising, growing its user base to 150 million from 45 million seven years ago.
Past commitments
Tata Motors and Uber's electric vehicle commitment
Earlier this month, Tata Motors pledged to supply Uber with 25,000 electric vehicles (EVs) in what is being touted as the largest EV commitment between an automaker and a ride-hailing platform in India. The partnership seeks to electrify Uber's services in metropolitan cities and may include a long-term supply commitment. With a 70% share in the passenger EV sector, Tata Motors aligns with Uber's zero-emission goals.
Food business
Tata Neu's foray into food ordering business via ONDC
Tata Neu is also about to enter the food ordering segment through the ONDC route. The company's aim is to establish a "high-frequency use case" that will bring users to the super app. ONDC, short for Open Network for Digital Commerce, is a government initiative supported by private entities, facilitating direct interaction of buyers and sellers. Tata Neu has registered as buyer-side app on ONDC, meaning it will take your orders and another delivery service will deliver it to you.