In a tactical move, ride-hailing player Ola is now embarking on a new journey – The food delivery space, by acquiring Foodpanda from Germany-based Delivery Hero Group. It certainly must have given food for thought to rivals like UberEats & Zomato.
While the companies have not divulged the deal size yet, sources have guesstimated the stock-based acquisition to under $50 million.
To spice things up further, Ola is raising $200 million for Foodpanda India, which claims over 12,000 restaurant partners in 100+ cities. Needless to say, that investment alone points out a deep pockets maneuver. While this seems to be turning out to be a bang-up deal, there’s a big challenge ahead.
Foodpanda hasn’t quite picked up in India as intended. The organization ran into some troubles with operations including temperamental services and fake listings – all of this while they fired more than 300 of its employees.
Ola seemed to have taken the ‘Fail better’ proverb to heart this time, as this isn’t Ola’s first move into food. The previous involvement – Ola Cafe shut down in 2016 under a year after operating. The Delivery Hero Group expects the partnership with Ola, will somehow allow the company to promote solidified markets, where it makes some sense to cooperate with leading names.
The on-demand Food Delivery Business is flourishing. While it has been said that Foodpanda India will surely gain some perspective from Ola’s effectiveness, one thing hasn’t been said though, what will that prompt?
One thing is certain Ola has just decided to enter into another rumble – Time will tell.
If you are planning to start your food delivery app, don’t forget to check out our food delivery app development guide.
So long for Foodpanda in India. I am an avid foodpanda customer. Wonder what Ola will do with it?