Ola's Ambitious Leap into Food Delivery with ONDC Partnership

Ola's Strategic Move: Venturing into Food Delivery with ONDC Partnership

Ola, the renowned mobility unicorn, is once again setting its sights on the food delivery segment, embarking on its fourth attempt in this space. This time, Ola has taken a strategic step by joining the government-backed Open Network for Digital Commerce (ONDC) to facilitate its food delivery services.

Pilot Phase: Testing the Waters

The company commenced its latest food delivery venture by piloting the feature within its ride-hailing app since August. During this testing phase, the service was initially limited to Ola's employees and a select group of users, operating under the name 'Ola ONDC food'. The discreet testing allowed Ola to fine-tune its offering and ensure a seamless user experience.

A Potential Challenger to Existing Players

As Ola's food delivery service gains momentum, industry insiders are abuzz with anticipation. It is seen as a formidable competitor to established players like Swiggy and others in the food delivery ecosystem.

While the feature is currently accessible to only a limited number of users, it is expected to be rolled out to a wider audience in the near future.

Ola's Strategic Approach

Unlike its previous food delivery endeavors, Ola does not plan to launch a separate delivery app this time. Instead, it has opted for a collaborative approach by partnering with ONDC, a government-backed initiative in the digital commerce space.

This strategic decision is seen as a wise move by industry experts, emphasizing Ola's intent to streamline its services through ONDC's platform.

Bhavish Aggarwal's Vision

During the India Internet Day event held on August 24 in Bengaluru, Ola's Chief Executive Officer (CEO), Bhavish Aggarwal, indicated the company's plans to align with the state-backed ONDC network.

This move underscores Ola's commitment to exploring new avenues for growth and diversification within the digital commerce landscape.

The Role of ONDC

The Open Network for Digital Commerce (ONDC) has been actively onboarding players within the mobility sector. ONDC's open mobility initiative aims to provide customers with a seamless experience by enabling them to book rides from their preferred apps.

It also seeks to integrate various modes of transportation, including metro, auto-rickshaws, and buses. Notably, Namma Yatri, a service launched by Juspay Technologies in partnership with Bengaluru drivers, recently joined ONDC's expanding network.

In summary, Ola's strategic partnership with ONDC marks a significant step in its renewed ambitions for the food delivery segment. As Ola ventures into this space once again, it aims to leverage the platform's wide-reaching network and streamline its services, potentially transforming the food delivery landscape in India.