Ola to Enter Online Grocery Business

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Homegrown cab-hailing platform Ola may leverage the 125K food delivery riders from its food delivery unit, Foodpanda, for grocery fulfilment. The move comes as Ola’s global rival, Uber, looks to launch a few pilot projects for grocery delivery in India by next year.

Foodpanda’s Indian business was acquired by Ola from its Germany-based parent firm Delivery Hero Group in an all-stock deal for $31.7 Mn (INR 202 Cr) in January.

According to reports, Ola has been working on a grocery-specific platform for the last five months and aims to launch it in early 2019, a media report said, citing unnamed sources.

The Bengaluru-based company is also in discussion with major retail chains and cash-and-carry companies across the country to work on a few partnerships and plans to offer retailers a revenue-sharing model.

Ola’s plans to leverage Foodpanda’s delivery network for its grocery business comes at the time when online grocery sector is expected to almost quadruple over the next three years to touch $1.38 billion (₹ 100 billon) in terms of revenues.

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