Ride-sharing platform Ola announced it has acquired Foodpanda's India business in exchange for Ola stock. The company also announced it will invest $200 million (approximately Rs. 1,282 crores) into Foodpanda's India business over an undisclosed period of time.
Foodpanda India will benefit from Ola's scale and efficiencies as a platform, also having leveraged knowledge from Delivery Hero's global best practices. Ola and Delivery Hero will continue to collaborate on establishing the online food delivery ecosystem in India.
Ola competitor Uber already offers UberEATS online meal ordering and delivery platform, and with Foodpanda acquisition, one can expect Ola to offer a comparable service within its app. The company had newly declared a tie-up with Zomato to facilitate food via from its in-car Ola Play platform.
As one of India's pioneers in the food delivery industry, Foodpanda became a very effective and profit-focused business over the last couple of years, with Delivery Hero's global leadership and Ola's platform capabilities with unique local insights, this partnership is born out of strength.
India's food tech market uses technology to make and deliver food to consumers, is seeing the awakening after a meltdown in the last two years that saw several firms scale down or shut operations due to unviable business model.
Firms were contributing more money to attracting customers on their platforms to order food than they earned as the commission from restaurants for orders. The food tech meltdown also forced global investors to reinvent business models and to invest in startups that are clones of global firms.
There is a distinct progress towards earning more margins from restaurants.SHOPURFOOD provides you ideal food Ordering script which may be identical to the Foodpanda clone, Just Eat clone, Swiggy Clone, GrubHub Clone.Consult our experts to get more business insights.