Ola joins the ONDC bandwagon to deliver food
Ola, a leading player in the mobility sector, is making its fourth foray into the food delivery business by partnering with the government-supported Open Network for Digital Commerce (ONDC). The company has been quietly testing this new feature within its ride-hailing app since August, and it has now become visible to some users.
While Ola’s previous attempts at food delivery did not meet with long-term success, this latest move indicates the company’s determination to enter and potentially disrupt the highly competitive food delivery market in India. While details about Ola’s food delivery strategy are yet to be revealed, this development marks a significant step for the company in its quest to diversify its services beyond ride-hailing.
Ola has been actively testing its food delivery feature, known as ‘Ola ONDC food,’ for a period of over a month. Initially, this feature was made available within the company’s app for its employees and a select group of users. While it is currently accessible to only a limited number of users, Ola has plans to expand its availability to a wider audience in the near future.
This gradual rollout allows the company to fine-tune the service, gather user feedback, and make necessary adjustments before a broader launch. Ola’s strategic partnership with ONDC is part of its broader efforts to diversify its offerings and explore new revenue streams beyond ride-hailing.
By entering the food delivery segment through its partnership with ONDC, Ola aims to challenge established players like Swiggy and others. This strategic move reflects Ola’s desire to diversify its services and extend its presence in the highly competitive food delivery market.
As Ola continues to explore this new venture, it will be interesting to see how it positions itself and what unique features or offerings it brings to the table to compete effectively in the space. Moneycontrol has reached out to Ola for additional details on this development, and further updates will be provided once the company responds.
Ola’s most recent attempt to enter the food delivery space was in 2022 when the company was planning to integrate its cloud kitchen business with a 10-minute grocery delivery service. However, it appears that Ola is now making another push into the food delivery sector through its partnership with ONDC, potentially competing with established players in the space.
This move aligns with Ola’s ongoing efforts to diversify its services beyond ride-hailing and expand its presence in the broader mobility and delivery ecosystem. By leveraging the ONDC platform, Ola aims to tap into the food delivery market, which is highly competitive but offers significant growth potential in India.
Ola’s foray into the food delivery sector has been marked by a series of attempts. The first venture was launched in July 2015 when the ride-hailing company introduced a standalone online grocery store in Bengaluru, followed by the launch of a food delivery app in March of the same year. However, less than nine months later, Ola made the decision to shut down both Ola Store and Ola Foods, citing operational challenges.
In its current endeavor, Ola is taking a different approach by collaborating with ONDC, signaling a strategic shift away from launching a separate delivery app. This partnership with ONDC allows Ola to leverage an existing platform and infrastructure to enter the food delivery market, avoiding the challenges it faced in its previous standalone ventures.
Ola’s decision to join the government-backed Open Network for Digital Commerce (ONDC) aligns with the platform’s broader strategy to enhance its services. Reports have indicated that Ola’s CEO, Bhavish Aggarwal, mentioned the company’s intention to become part of ONDC during the India Internet Day event held in Bengaluru on August 24.
The Open Network for Digital Commerce (ONDC) has been proactive in its efforts to collaborate with players in the mobility sector as part of its open mobility initiative. The goal of this initiative is to enhance the customer experience by enabling them to book rides through their preferred apps while seamlessly integrating various modes of transportation, including metro, auto-rickshaws, and buses.
ONDC’s vision is centered on establishing a unified and efficient transportation ecosystem. The initiative has made significant progress by successfully bringing aboard recent participants like Namma Yatri, a collaboration facilitated by Juspay Technologies and Bengaluru drivers. This strategic partnership is in line with ONDC’s overarching mission to revolutionize and modernize the mobility landscape in India, offering convenience and accessibility to consumers while fostering innovation and growth within the sector.
