Ola's parent ANI Technologies suspends Foodpanda's delivery business, terminates contracts of several delivery executives
In the last two weeks, Ola has dissolved the ground team completely. The company, however, has retained the core operations team consisting of senior employees
Foodpanda will be focusing only on running the cloud kitchen brands instead of a food delivery business
Ola is concentrating on building its private label brands, which include The Great Khichdi Experiment, Lovemade and FLRT
The competition has been intense in the segment with the likes of Zomato and Swiggy fighting aggressively to capture the market
Cab-hailing startup Ola's parent ANI Technologies Pvt. Ltd has reportedly suspended Foodpanda's delivery business and terminated the contracts of several food delivery executives, a media report said.
ANI Technologies Pvt. Ltd acquired Foodpanda some 18 months ago.
In the last two weeks, Ola has dissolved the ground team completely, Mint said, citing people familiar with the matter. The company, however, has retained the core operations team consisting of senior employees, the report added.
Foodpanda will be focusing only on running the cloud kitchen brands instead of a food delivery business, a source familiar with the development told the newspaper.
According to The Economic Times, Ola is concentrating on building its private label brands, which include The Great Khichdi Experiment, Lovemade and FLRT.
In December 2017, Ola acquired Foodpanda India in an all-share deal and said it would invest $200 million (over Rs 1,280 crore) in the business. Ola acquired Foodpanda India from its German parent, Delivery Hero. Delivery Hero had acquired Foodpanda from Rocket Internet in December 2016 to extend its food-ordering business into Asia, the Middle East and parts of Eastern Europe.
Foodpanda competes with UberEATS and Zomato and Swiggy. Uber, the US-based ride-hailing firm is aggressively expanding meal order and delivery platform UberEATS in India.
Ola had in 2015 attempted its own food delivery service, called Ola Cafe in Delhi, Mumbai, Bengaluru and Hyderabad but shut it down a year later after failing to meet targets.
The competition has been intense in the segment with the likes of Zomato and Swiggy fighting aggressively to capture the market.
The online food ordering market in India is likely to grow at over 16 percent annually to touch $17.02 billion by 2023, according to a study by business consultancy firm Market Research Future. The growth in online food ordering market has been attributed to the rising number of women among the working population in most of the metro cities.
Bengaluru gets the highest number of online orders as compared to other cities with 20 percent of the market share acquired by the southern city, the report said.
It is followed by Mumbai, Pune, Delhi and Hyderabad with a share of 18 percent, 17 percent, 15 percent and 12 percent, respectively, while other cities accounted for 18 percent of the market share.
"The rising number of logistics providers has also enabled food delivery companies to optimise their fleet, thereby reducing delivery time. Online food delivery platforms are focused towards acquisitions and are collaborating with logistics companies to manage delivery operations in the dedicated region," the study had said.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
Ola is restructuring its food delivery platform Foodpanda to focus on building a portfolio of its own as well as curated food brands through a network of kitchens and offline stores
Ola buying Foodpanda’s India business comes as a big relief for German tech incubator Rocket Internet
With the declaration, the domestic ride-haling company Ola is trying to re-enter the online food delivery segment
Restaurants in dilemma after govt makes changes in FDI norms for e-commerce firms, seek clarification
NRAI had approached the DIPP early this month seeking clarity if online food companies should comply with the FDI guidelines.