Ola, a ride-hailing company is all set to make an entry into food delivery area again. It has acquired FoodPanda India from Germany based Delivery Hero Group. While the companies did not disclose the details of the deal size, sources have pegged that the stock-based acquisition is done under $50 million. This move will also see Ola investing another $200 million, as it plans to take on its rivals: UberEats and incumbents like Zomato and Swiggy.
Saurabh Kochhar, the former CEO of Foodpanda India has left the company and Pranay Jivrajka, founding partner at Ola has been appointed as the interim CEO of Foodpanda and will work with the existing leadership team at the company.
According to analysts, Ola has acquired the third largest player in the food delivery business in India and is focussed on broadening and strengthening its range of services, including the food delivery segment, after their Ola Cafe failed to flourish in 2015.
“Foodpanda has come to be a very efficient and profit-focused business over the last couple of years. Our commitment is to invest $200 million in Foodpanda India which will help the business to be focused on growth by creating value for customers and partners. With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength,” said Bhavish Aggarwal, CEO of Ola.
Ola is focussed on diversifying its offerings by making an acquisition in the food delivery segment.The Delivery Hero Group believes the partnership with Ola, will enable the company to further consolidate markets where it strategically makes sense to be collaborated with leading local players.