Tata Neu to Enter Food Delivery Fray via ONDC Integration: Report

Tata Neu — the ‘super app’ launched by the Indian conglomerate in 2022 — is planning on entering the food delivery sector in the coming days, according to a report. Instead of building its own network, the service is said to rely on technology developed by Gurgaon-based startup Magicpin to tap into the government backed Open Network for Digital Commerce (ONDC). The Tata Group is yet to announce any plans to launch its own food delivery service in the country.

A Moneycontrol report citing anonymous sources states that “closed-user group trials” for Tata Neu’s food delivery service were imminent, while most users on the app will have to wait for a month — or longer, perhaps — before it is rolled out by the company. Tata Neu will include listing of several thousand restaurants on the ONDC network in addition to Tata’s own establishments.

Entering the food delivery sector means Tata would compete with Zomato and Swiggy — the current heavyweights in the sector — while relying on the government backed ONDC network to connect with restaurants and delivery/ logistics resources in order to ensure the customer’s order reaches them.

As a result, the Tata Group will be able to operate the food delivery service in a cost-effective manner. Tata Neu is using technology from Magicpin in order to tap into the ONDC network, as per the report that cites another anonymous source that said Tata Neu could also use ONDC for other categories as well.

Launched in April 2022, Tata Neu is available to download via the App Store and Google Play store on iOS and Android smartphones, respectively. After installing the app, users are asked to sign up with their phone number and provide location access in order to access the app and its services. The ‘super app’ also lets users earn NeuCoins when they make purchases in the app.