Tata Group is gearing up to venture into the online food delivery sector, posing a challenge to established players such as Swiggy and Zomato. The company intends to facilitate food delivery via ONDC through Tata NUE, its super app. This strategic move aims to enhance app engagement by drawing in a larger user base.
The Tata NUE App features a designated section for food, exclusively displaying the menu offerings from Taj brand restaurants, operated by the Tata Group’s hotel company. However, by leveraging ONDC for food distribution, users can now access and purchase a diverse range of culinary delights from various eateries across different cities.
Presently, Swiggy and Zomato dominate the online food delivery sector in India, holding a staggering 95 percent market share. In the fiscal year 2022-23, their combined order value reached $600 crore (Rs 50,000 crore). Tata NUE, operating through ONDC, aims to offer competitively priced food, benefitting from substantial discounts on ONDC food orders. This strategy poses a potential threat to the market share of Swiggy and Zomato.