Ola acquires Foodpanda India

Ola is gearing up to set foot into the online food ordering and delivery segment in India to rival UberEats, and other players like Zomato and Swiggy.

The popular Indian ride hailing service has acquired popular online food delivery service Foodpanda India from its German parent Delivery Hero AG on an all-stock deal.

Under the deal, Foodpanda's India unit will be transferred to Ola in exchange for the latter's stock. However, the details of the transaction were not disclosed. Also Ola will invest $200 million into Foodpanda's Indian operation, making it the largest injection of cash into the country's online food ordering and delivery industry till date.

This is not the first time Ola is trying its hand at food delivery service. Back in 2014, Ola tested Ola Cafe, but had to shut it down shortly  after.

But with the Foodpand acquisition, Ola will once again look to re-enter  the food delivery business.  Foodpanda is present in more than 100 Indian cities, and claims to have 12,000 restaurant partners. For comparison, UberEats is operational in less than 20 cities.

According to Ola "Foodpanda India will benefit from Ola’s scale and efficiencies as a platform, also having leveraged learnings from Delivery Hero’s global best practices. Ola and Delivery Hero will continue to collaborate on building the online food delivery ecosystem in India."

Source | Via

Kaiser Bey

Kaiser is a tech enthusiast who likes to write, read and talk about tech. He dreams of going to Mars and never come back. We hope that you find his posts on AndroGuider helpful and informative