Ola, the online cab aggregator has opened up new dimensions for its business by taking over the food delivery line Foodpanda India, from its German parent – Delivery Hero AG. Ola plans to infuse a massive investment worth $200 million in Foodpanda India’s ops to give it a booster in providing services.
Ola India and Uber India are two severe rivals and they keep giving each other neck-to-neck competition. 7-months since the launch of Uber’s on-demand food delivery app called UberEATs in India, Ola has now opened up even bigger door for itself in the on-demand food delivery app sector. With an all-stock deal, Ola has acquired the popular and widely used food delivery start-up called Foodpanda; which means all the shares of Foodpanda will be transferred to Ola for Ola’s stocks. This deal is roughly valued to be around $50 million, however, there is no official word on the financial details or figures of this takeover.
Foodpanda is said to be the third largest start-up in the on-demand food delivery market of India and Ola seems to have big, big plans because the company is planning for something huge. Ola has declared that they will be investing over $200 million in Foodpanda India’s food deliver chain to broaden the range of services currently provided. Although this isn’t the first time that Ola has dived into the food deliver market; earlier in 2015, Ola had launched Ola Café, but was turned down after failing to take off. But taking over Foodpanda, which is an already well-rooted business in Indian market, is a smart move from Ola.
Considering the fact that Foodpanda is a very efficient and profit focused business since two years, Ola is certainly eyeing huge cash-pots. Ola has just joined hands with Foodpanda’s German parent company named as Delivery Hero AG and with their delivery workforce and Ola’s platform and local insights, they are expecting a strong network. And who knows, it may as well be treated to be something beyond just restaurant food delivery; but we do know that big days are coming for Ola and Foodpanda in Indian market and it will bring exciting new services for customers of India.