wordpress blog stats
Connect with us

Hi, what are you looking for?

Update: Ola denies shutting Foodpanda’s delivery biz, says it’s ‘repurposing’ business to focus on kitchens

Update at 3 pm: Ola has denied reports that it is suspending its food delivery business, and issued the following statement to MediaNama:

As part of our ongoing business repurposing initiatives, we are focused on building a portfolio of own food brands and curated food offerings through our fast expanding network of kitchens. Many of these offerings are already available in all major cities through the Ola and Foodpanda apps. We continue to invest in expanding our facilities and kitchens, as well as our portfolio of food offerings for customers. We remain committed to our mission of building a superior food experience for millions of our customers

Today at 11:30 am:

Ola has suspended Foodpanda’s delivery business and has laid off 40 employees and 1,500 delivery executives, the company is now switching to in-house brands and cloud kitchens only, as per multiple reports (see here and here). Foodpanda was reportedly unable to continue competing with heavyweights Zomato and Naspers-backed Swiggy, both of which have been burning cash by offering discounts and expanding services to more cities. It is worth noting that in December, Foodpanda claimed to have 60,000 restaurants listed and servicing in 100 cities. Between September and December 2018, it had expanded to roughly 60 locations. It reported losses of Rs 228 crore for FY17-18, up by 80% from losses of Rs 45 crore the previous year.

What now? The current idea at Foodpanda is to switch focus on cloud kitchen business including its own brands, instead of being a marketplace. It currently owns four private labels – the Great Khichdi Experiment, FLRT, Lovemade, and Grandma’s Kitchen – and lists over 50 cloud kitchens. These operate in Bangalore, Delhi, Pune, Mumbai, and Chennai. Its reportedly in talks with concierge service Dunzo and Zomato to relist its cloud kitchen brands, focusing on in-house brands is way to achieve higher profits as the aggregator platform retains 40% of the cloud kitchen’s earnings. It is even hiring for the cloud-kitchen segment, per Business Insider.

What we know from before: At its peak in September 2018, Foodpanda was processing 3 million orders a month, while Zomato and Swiggy were processing 30 million per month. Ola had acquired Foodpanda India from German parent DeliveryHero in December 2017 and invested Rs 400 crore in the company. Ola first food delivery initiative ‘Ola Cafe’ had failed and shut operations within a year of launch.It even appointed new leadership for strategy and marketing.

Advertisement. Scroll to continue reading.

UberEats is still around . . : The food delivery business in India has a fourth wheel – UberEats. Parent company Uber has tried to sell off its UberEats business in India to either Zomato and Swiggy, but has failed to get a buyer.

Edit: The headline has been changed following a statement from Ola.

Written By

I cover health, policy issues such as intermediary liability, data governance, internet shutdowns, and more. Hit me up for tips.

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



A viewpoint on why the regulation of cryptocurrencies and crypto exchnages under 2019's E-Commerce Rules puts it in a 'grey area'


India's IT Rules mandate a GAC to address user 'grievances' , but is re-instatement of content removed by a platform a power it should...


There is a need for reconceptualizing personal, non-personal data and the concept of privacy itself for regulators to effectively protect data


Existing consumer protection regulations are not sufficient to cover the extent of protection that a crypto-investor would require.


The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...

You May Also Like


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...


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...


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...


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...

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
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