Ola to switch gears on Foodpanda, their food delivery application
Ola has finally ended up expanding in some of the international markets and is now focusing on achieving the goal of electric vehicles. The company is now struggling with their food delivery business and this is why it will be making major changes in the business.
Ola is now shifting its focus towards Foodpanda which is an Indian food delivery startup acquired by Ola in the year 2017. Ola now wants to focus on their in house food delivery application because this was the business which was left neglected. The market leaders in the food delivery industry are Zomato and Swiggy that work with a lot of small and big restaurants creating a very big portfolio. The main focus of Foodpanda will now be increasing the portfolio of all the private labels.
Ola has already started to walk towards its goal by having a total of 50 Kitchens and four private labels. Some of the places which are covered by Ola are Flrt, Lovemade, and Grandma’s Kitchen. These places cover all the popular dishes which include Rice, lentils, Indian subcontinental, shakes and biryani. All the stores are operating in Chennai, Pune, Mumbai, and Delhi.
A company spokesperson said in a statement:
“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. 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.”
Foodpanda is planning to expand its avenues and will soon be operating in 10 more markets, which will be under a different owner called Delivery Hero. Delivery Hero is known for being very popular outside of India.
After Ola acquired Foodpanda, the company tried to give heavy discounts to the customers so that more people purchase food from their application. The company had said that it has invested a total of $200 million in the Foodpanda business. The discounts ended up creating a lot of loss for the company making Ola change the whole strategy for the food business. The way of the company to reach its audience did not work successfully for them.