Ola Partners with ONDC, Revives Food Delivery Aspirations Through Pilot Program

• ByStartupStory     |    September 2, 2023

Indian mobility company Ola is making its fourth attempt at entering the food delivery market by joining the government-backed Open Network for Digital Commerce (ONDC). The company has been testing food delivery services within its ride-hailing app since August and is expected to compete with established players like Swiggy.

“This is big for Ola, this is likely to compete with Swiggy and others… This feature is not available for everyone, only a handful of users for now, and is likely to be open for all, ” said an industry source aware of the development.

Ola’s previous attempts to enter the food delivery space include launching a standalone online grocery store and a food delivery app in 2015, both of which were eventually shut down less than a year later. However, this time, Ola is not planning to launch a separate delivery app.

“Collaborating with ONDC is a wise choice for Ola. They may not roll out a separate app, ” The person quoted above said.

During an event in August, Ola’s CEO, Bhavish Aggarwal, hinted at the company’s intention to join the state-supported ONDC network. ONDC is actively onboarding players within the mobility sector and aims to offer customers the ability to book rides from their preferred apps, integrating various modes of transportation, including metro, auto, and buses. Other mobility companies, such as Namma Yatri, have also recently joined this initiative in partnership with Juspay Technologies.

In summary, Ola is making another attempt to enter the food delivery market, this time by collaborating with ONDC. The company is testing food delivery services within its ride-hailing app and aims to compete with existing players in the space. This move aligns with Ola’s strategy to expand its services without launching a separate app.

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