The disclosure provides an approach for routing traffic in a network. Embodiments include receiving, by a service router of an edge services gateway (ESG), a packet comprising a virtual network identifier (VNI) and a virtual local area network (VLAN) identifier. Embodiments include sending, by the service router, the packet to a virtual switch of the ESG based on the VNI of the packet. Embodiments include determining, by the virtual switch, a virtual routing and forwarding (VRF) router of the ESG for the packet based on the VLAN identifier. Embodiments include forwarding, by the virtual switch, the packet to the VRF router.