Ola suspends food‑delivery operations amid strategic shift
What's the story
Ola, the popular ride-hailing company, has suspended its food delivery service, Ola Foods. The decision comes as part of a broader restructuring effort by the SoftBank-backed firm. The service was launched in September 2023 as part of a partnership with the government-backed Open Network for Digital Commerce (ONDC). However, it has now been removed from the main Ola app and isn't accepting orders through ONDC either.
Business evolution
Ola Foods's journey and challenges
Ola Foods was launched in 2019 as a cloud-kitchen venture with in-house brands and delivery through Ola's logistics network. The service was expanded to 100 cities by December 2024. However, despite scaling the model on ONDC over the past year, order volumes remained limited. This indicates the tough competition in India's food delivery and cloud-kitchen space dominated by Swiggy and Zomato.
Uncertain future
Ola's future plans for food delivery service unclear
The future of Ola Foods remains uncertain as the company has not confirmed whether it plans to relaunch the service or exit the category altogether. The decision comes amid a portfolio restructuring and re-evaluation of non-core businesses by the company. Industry executives have said that most activities have been put on hold, indicating a major shift in Ola's business strategy.