Uber has entered into a memorandum of understanding with a government-backed Indian firm aimed at enhancing accessibility to mobility and commerce across the nation.

The leading ride-hailing company announced on Thursday its intention to explore integration opportunities with the Open Network for Digital Commerce (ONDC) to expand the scope of its mobility services within the Uber app. At an event in Bengaluru, Uber CEO Dara Khosrowshahi expressed keen interest in open-source technology stacks, highlighting the potential they offer for all stakeholders.

Prabhjeet Singh, president of Uber India and South Asia, emphasized the significance of the MoU with ONDC, stating their commitment to making Uber a comprehensive platform for daily mobility needs across India.

While specific details of the partnership were not disclosed, TechCrunch has learned that Uber will initially integrate with the ONDC network for intercity bus and metro rail ticketing services.

Launched in 2021, ONDC aims to revolutionize India’s e-commerce and mobility sectors by providing an open platform connecting buyers and sellers. Despite initial challenges with engagement from major players like Amazon and Flipkart, ONDC continues to expand, now venturing into the mobility domain.

T Koshy, CEO of ONDC, emphasized the importance of collaboration among diverse players to drive innovation and enhance mobility solutions for Indian consumers.

In its efforts to ensure sustainability, ONDC is considering a nominal fee model for some participants, with the aim of supporting small entities without imposing undue financial burden.

India remains a crucial market for Uber, where it faces competition from Ola. Despite challenges, Uber continues to innovate and explore opportunities in the dynamic Indian market.