Ola buys Foodpanda India to get into food deliveries
After Uber, it's now Ola's turn to get into the food delivery business. They announced a deal to acquire Foodpanda's India business from its parent company DeliveryHero. The deal will see Ola clinch the Foodpanda India business with DeliveryHero taking an undisclosed amount of Ola stock in exchange.
Ola — which is now at around two million rides per day — is an ideal buyer. The company is in the mood for expansion after it closed a $1.1 billion funding round led by Tencent and SoftBank in October, and seeking ways to differentiate itself from Uber’s Indian business. To help kickstart that, Ola is pumping $200 million into Foodpanda India, which claims 12,000 restaurant partners in over 100 cities. That investment is more capital than Foodpanda’s (many) competitors in India have raised to date, as Ola went to great pains to point out. But still, there’s a great challenge ahead.