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Tata Neu Dives into Online Food Ordering through ONDC Integration

Tata Neu, Tata Digital's super app, enters the online food ordering space via ONDC integration, aiming to attract regular users and cross-sell various products while tapping into India's growing food delivery market.

Tata Digital's multifaceted super app, Tata Neu, is venturing into the online food ordering landscape by leveraging the open network for digital commerce (ONDC) platform. In the coming days, the company will commence closed-user group trials, with the feature expected to be available to the wider public within a month or more.

Tata Neu's ONDC integration aims to offer cost-effective food ordering services without relying on a dedicated delivery fleet or restaurant partnerships. The collaboration with Magicpin, a technology services and restaurant onboarding expert, will facilitate this integration.

This strategic move is part of Tata Neu's plan to create a "high-frequency use case" to drive regular app usage among consumers. By attracting users to order food through the platform, Tata Neu aims to cross-sell other products available on the app, including apparel, jewelry, groceries, electronics, and more.

Tata Digital's ONDC initiative at Tata Neu is spearheaded by Gaurav Porwal, a senior vice president at Tata Digital, responsible for acquired consumer internet businesses like BigBasket and 1mg.

This expansion into the online food ordering sector comes shortly after reports that Tata Digital is preparing to challenge investment tech platforms like Zerodha and Groww by introducing stock trading and mutual fund investment offerings on Tata Neu.

Despite reporting a consolidated net loss of INR 3,052 crore in FY22, Tata Digital is actively looking to secure a fresh billion-dollar investment to strengthen its digital presence. The company has been on an acquisition spree, acquiring firms such as BigBasket and 1mg in 2021. These acquisitions have allowed Tata Neu to incorporate offerings from various Tata-owned brands onto its platform, including Croma, CLiQ, Titan, Tanishq, Westside, and Air India.

Magicpin, backed by Zomato and a prominent player on the ONDC platform, has diversified its offerings beyond food, introducing categories such as fashion and electronics, reducing its dependence on food orders.

Tata Neu's move into online food delivery aligns with India's growing online food delivery market, expected to reach $81.9 billion by 2028, with a compound annual growth rate (CAGR) of 19.7% from 2023 to 2028. Established players like Zomato and Swiggy have paved the way for the food delivery ecosystem in the country.