wordpress blog stats
Connect with us

Hi, what are you looking for?

Ola shuts down its food and grocery delivery business

ola_prime_cmn

Online cab aggregator Ola has shut down its food and grocery delivery businesses Ola Cafe and Ola Store. The company confirmed the development on its blog.

“The Ola Store app and Ola Café category on the Ola app will not be available from this week onwards. We understand that you will miss receiving your favorite food or your daily groceries within minutes from our respective services. But then, all good experiments have to come to an end and we are happy that you were part of this journey,” the company said.

Ola had launched Ola Cafe last year and offered users lunch, snacks and dinner as part of its service. The service was live in Mumbai, Hyderabad, Delhi and Bangalore. It did not provide users with an extensive menu to choose from but rather offered a few particular items from a handful of restaurants in the customer’s vicinity, with a focus on quick delivery.

Ola Store debuted in Bangalore in July last year.  Users had the option of setting their preferred time slot for delivery and the ‘Deliver Now’ option where orders are delivered in 90 minutes. The service delivers groceries from neighbourhood stores such as Family Mall, Grocery Mart and Namdhari’s Fresh.

A Mint report quoting sources said that  though Ola Café scaled up in the first few months after the launch, it failed to meet expectations as the vertical faced stiff competition from other food delivery businesses such as Swiggy, Tinyowl and Zomato.

Advertisement. Scroll to continue reading.

Launch of bike taxis and other transportation solutions 

– Earlier this month, literally hours after rival Uber launched bike taxis, Ola anounced its bike taxi service. However, Bangalore’s Commissioner for Transport & Road Safety, Dr Ramegowda told MediaNama that Ola and Uber have to go to the Road Transport Authority (RTA) of the state to obtain permission in order to operate in the city and as such their operations are illegal.

– In February, Ola slashed prices for Ola Auto in Indore and Ahmedabad. The company also introduced Ola Share, Shuttle and Autos in Uttar Pradesh after signing a memorandum of understanding with the state. Ola Shuttle announced that its service will now be available for corporate customers who sign up via Ola Corporate, its business solution for companies which would allow their employees to get an Ola cab. Ola introduced a new price point for its customers in Mumbai called Ola Micro. According to company’s website, the new price category will be available select users in Mumbai and cab fares will start at Rs 45 and subsequent kilometers will be charged Rs 8.

Consolidation in the online grocery space

– Earlier in February, Flipkart  shut down its grocery delivery service Nearby five months after its launch.

-In the same month, hyper-local grocery delivery service PepperTap shut down operations in six cities: Mumbai, Kolkata, Chennai, Ahmedabad, Chandigarh, and Jaipur. It laid off about 400 delivery personnel. In December, the company raised $4 million from Innoven Capital, and acquired Bangalore-based hyper-local grocery delivery service Jiffstore.

Advertisement. Scroll to continue reading.

– In January, Grofers shut down its services in 9 cities citing low acceptance. The company had expanded to these Tier II cities, including Ludhiana, Bhopal, Kochi, Coimbatore and Visakhapatnam in September 2015. Grofers will now operate in 17 cities.

– In November 2015, Indian Grahak, the Kolkata based online supermarket,acquired online hyper-local marketplace Dyscover in a cash and stock deal.

– In September 2015, Delhi-based AUTOnCAB, a cab and auto booking service, acquired the Gurgaon-based online grocery delivery startup BigZop in a stock and cash deal.

 

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ