Tata Group’s digital arm, Tata Digital, is preparing to enhance its Tata Neu food delivery app by integrating it with the Open Network for Digital Commerce (ONDC) in India, MoneyControl has reported.

Its report stated in February 2024: “It is likely to be launched for closed-user group trials in the next few days. But the feature may still be a month or more away from going live for the broader public.”

The idea behind the Tata Neu app’s enhancement is to develop a “high-frequency use case” to bring back consumers to the app.

The move broadens the app’s food delivery offerings beyond the current menus from Tata’s own hotel brand, the Taj.

Tata Neu users will gain access to eateries already participating in the network of ONDC, an Indian government-backed initiative.

The country’s food delivery market, currently dominated by Swiggy and Zomato with over 95% market share, reached a cumulative gross order value of almost $6bn in the fiscal year 2023.

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By GlobalData

Tata Neu’s integration with ONDC is led by Tata Digital senior vice-president Gaurav Porwal. It is a strategic move to tap into a lucrative sector without the overhead of managing delivery logistics or restaurant partnerships.

Following its launch in April 2022, Tata Neu has faced criticism for not meeting expectations.

Some have suggested that the super app concept is inherently flawed, while others believe that Tata’s approach lacks the agility typically seen in the tech sector.

Tata Neu’s collaboration with Magicpin, a Zomato-backed startup, is seen as crucial for the ONDC integration.

Magicpin, which has onboarded more than 50,000 restaurants to ONDC, is providing technology services to Tata Neu in an arrangement similar to its partnerships with Paytm and Ola.