Ola Mobility, under the leadership of Bhavish Aggarwal, is set to diversify its ecommerce offerings with the integration of grocery delivery through the Open Network for Digital Commerce (ONDC). According to a report by Moneycontrol, Ola aims to capture a significant market share in the online food ecosystem, leveraging its strategic collaboration with ONDC.
The initiative will see Ola facilitating over 30% of ONDC food orders in Bengaluru and Delhi-NCR, highlighting its ambition to solidify its position in the burgeoning food delivery segment. Additionally, Ola plans to utilize its expertise in logistics by offering electric vehicle (EV)-based delivery services at competitive rates to smaller sellers on the ONDC network.
Currently, Ola stands as the second largest buyer-side platform in the food category after Magicpin, processing an impressive 15,000-20,000 food orders daily. This move positions Ola directly against established players like Pai Platforms (Paytm Ecommerce), Swiggy’s Instamart, and Blinkit in the competitive grocery delivery space.
Inc42 has reached out to Ola for further insights into this development and is awaiting their response for additional details.
Notably, this isn’t Ola’s first foray into grocery delivery. The company initially ventured into this space with a standalone food delivery app in 2015, utilizing its cab network for deliveries. However, it discontinued this service within nine months. In 2021, Ola re-entered the grocery delivery market with Ola Dash, serving Mumbai and Bengaluru, but eventually phased out operations after a year.
The reintroduction of grocery delivery via ONDC aligns with Ola’s broader strategy to enhance its app offerings, allowing users to access groceries, fashion, and apparel seamlessly. Furthermore, Ola has solidified its collaboration with ONDC by extending last-mile logistics services across all categories, including food, groceries, and pharmaceuticals.
Meanwhile, ONDC continues to expand its footprint by entering new segments and onboarding additional participants. In May, the platform witnessed a notable 23% month-on-month increase in transactions, processing a total of 89 lakh transactions across retail and ride-hailing sectors.
Several other startups, including Paytm, PhonePe, Delhivery, and Tata Neu, have also integrated their services with ONDC, underscoring its growing influence in India’s digital commerce landscape.
The integration of grocery delivery services by Ola through ONDC marks a strategic move aimed at capitalizing on the burgeoning ecommerce opportunities in the country, fueled by increasing digital adoption and evolving consumer preferences.
