Ola, the Indian ride-hailing giant, is making another foray into the food delivery business by rejoining the government-backed Open Network for Digital Commerce (ONDC). The move marks Ola’s fourth attempt to enter the food delivery segment, with previous endeavors ending in closures and setbacks.
The initiative is still in the testing phase and is currently accessible to a limited number of users. It initially began as an internal test involving Ola employees and a small group of customers. The feature is integrated within the Ola app and is labeled as “OLA ONDC food,” indicating that Ola does not plan to launch a separate app for food delivery.
This reentry into food delivery positions Ola as a potential competitor to established players in the sector, such as Swiggy. While the feature is currently limited in availability, it is expected to expand to a broader user base in the future.
Ola’s previous attempts to establish a foothold in the food delivery market have faced challenges. In 2015, Ola launched a standalone online grocery store and a food delivery app, but both ventures were discontinued within nine months. Last year, Ola attempted to integrate its cloud kitchen business with 10-minute grocery delivery.
ONDC, the Open Network for Digital Commerce, is a non-profit company that enables products and services from various e-commerce platforms to appear in search results across all apps on the network. It is aimed at democratizing India’s e-commerce ecosystem and was praised by Commerce and Industry Minister Piyush Goyal for its potential to redefine the industry.
Meanwhile, Ola founder and CEO Bhavish Aggarwal is reportedly in talks to appoint a CEO for the company’s cab business. The incoming CEO, rumored to be an ex-Unilever executive, will be responsible for managing the day-to-day affairs of Ola’s cab business. The specific leadership role, whether it will oversee ANI Technologies (the umbrella entity) or solely the Ola cab business, remains uncertain. Hemant Bakshi, the current global head and executive vice president of Unilever, is a favored candidate to lead Ola’s cab business.
