In a groundbreaking move, Ola Cabs is gearing up to revolutionize last-mile logistics through a strategic partnership with the Open Network for Digital Commerce (ONDC). This collaboration is set to offer comprehensive last-mile delivery services, spanning food delivery, grocery shopping, and pharmaceuticals, with an innovative twist—the entire logistics fleet will be powered by Ola Electric’s electric two-wheelers.
The announcement was teased by Ola’s co-founder and CEO, Bhavish Aggarwal, in a cryptic post on social media. “Very exciting stuff coming up with our collaboration at @Olacabs with @ONDC_Official! ONDC is the future of commerce in India, and we are committing to it big! Stay tuned for lots of updates in the near future,” Aggarwal hinted.
This move follows Ola’s recent integration with ONDC, where reports suggested the ride-hailing giant was piloting a food delivery platform. The impending partnership signals a significant shift in Ola’s ambitions, particularly in the foodtech space, putting it in direct competition with industry giants such as Zomato and Swiggy.
Ola’s past endeavors in the food delivery sector have faced challenges, with previous services like Ola Cafe and the acquisition of Foodpanda’s India operations proving less successful. However, the ONDC-centered offering appears to address previous pain points by streamlining integration with restaurant partners and consumer acquisition.
The strategic advantage of Ola’s partnership with ONDC extends beyond simplifying logistics. Leveraging Ola Electric’s expertise in the electric vehicle (EV) space, Ola Cabs is poised to outpace traditional players like Zomato and Swiggy in deploying environmentally friendly EVs, enhancing unit economics, particularly in fuel costs.
As ONDC rapidly expands its operations and daily transactions, Ola’s foray into the food delivery landscape emerges as a potential threat to established players. After years of refining unit economics, Ola seems to have positioned itself as a formidable contender in the foodtech arena.
