Ola denies shutting down Foodpanda, says it has a refocused approach to food delivery
- Reports say that Ola has shut down
Foodpandaand let go of numerous employees.
- However, an Ola spokesperson said that the company remains committed to its mission of building a superior food experience to its customers.
- In 2015, the company launched Ola Cafe, which only lasted for a year.
“We continue to invest in expanding our facilities and kitchens, as well as our portfolio of food offerings for customers. We remain committed to our mission of building a superior food experience for millions of our customers,” said an Ola spokesperson.
According to sources, Ola now has a redefined approach to food delivery with cloud kitchens – with more focus on its own brand instead of being a marketplace. With four private labels – The Khichdi Experiment, Grandma’s Kitchen, Lovemade and FLRT, sources say that Ola is actually ramping up its current 50+ cloud kitchens. The company is also looking at opening offline stores for these brands, say sources.
While media reports also say that Ola has let go of numerous employees, sources say that it is hiring for its cloud kitchen business.
"As part of our ongoing business repurposing initiatives, we are focused on building a portfolio of own food brands and curated food offerings through our fast expanding network of kitchens. Many of these offerings are already available in all major cities through the Ola and Foodpanda apps,” said the spokesperson.
Ola had acquired Foodpanda in 2017, after its own tryst with food delivery – Ola Cafe failed. Launched in 2015, Ola Cafe shut down operations in just a year. Reports have been doing the rounds since January 2019 about Ola’s rumoured to slash investments into Foodpanda.
India’s food delivery industry has seen the emergence of two big players – Zomato and Swiggy. While other players like Ola and Uber, have offered food delivery along with their ride hailing services, the food vertical seems to have not taken off well because of cash burn.
Ola’s struggles with food delivery aside, Uber too has been barely managing to keep up with Zomato and Swiggy. In Uber’s IPO filing, it has mentioned its offering UberEats, to say that in India it competes with Swiggy and Zomato, who have a “substantial market-specific knowledge and established relationships with local restaurants, affording them significant product advantages.”
Ratan Tata recharges Ola’s electric mobility wing – invests an undisclosed amount
In India, restaurants have a love-hate relationship with online food delivery platforms