Tata Neu to Enter Food Delivery Sector, Utilizing ONDC Network

According to a recent report, Tata Neu, the ‘super app’ introduced by the Indian conglomerate in 2022, is gearing up to venture into the food delivery domain. Instead of creating its own infrastructure, the service is reportedly planning to leverage technology developed by Gurgaon-based startup Magicpin to tap into the government-backed Open Network for Digital Commerce (ONDC). However, Tata Group has not yet disclosed any concrete plans regarding the launch of its own food delivery service.

Citing anonymous sources, a Moneycontrol report indicates that “closed-user group trials” for Tata Neu’s food delivery service are on the horizon, although the majority of users on the app may have to wait for at least a month, or possibly longer, before its official rollout. Tata Neu intends to feature listings from several thousand restaurants on the ONDC network, alongside Tata’s own dining establishments.

By stepping into the food delivery sector, Tata would enter into competition with Zomato and Swiggy, the dominant players in the field. By utilizing the government-backed ONDC network to connect with restaurants and delivery/logistics resources, Tata aims to ensure efficient order fulfillment for its customers, thereby enabling cost-effective operations for the group.

Reports suggest that Tata Neu is incorporating technology from Magicpin to access the ONDC network, with possibilities of extending its usage to other categories as well, as mentioned by another anonymous source.

Launched in April 2022, Tata Neu is downloadable from the App Store and Google Play store for iOS and Android smartphones, respectively. Upon installation, users are prompted to sign up using their phone number and grant location access to avail the app’s services. Additionally, the ‘super app’ offers users the opportunity to earn NeuCoins through in-app purchases.

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