We all know that Ola is a cab company but many people don't know that in the year 2015, Ola launched an online grocery store in Bengaluru and a food delivery app in March the same year. They planned to use its cabs and drivers to deliver groceries, between 9 am and 11 pm. After around nine months, it shut both Ola Store and Ola Foods without any detail.
Nearly after five years, Ola is ready to dive into the hyper-competitive grocery delivery space again. The market is already controlled by Grofers, Swiggy and Dunzo which offer delivery of essential products in around 10-30 minutes and Ola plans to fight a battle with these companies.
The Founder of the company Bhavish Aggarwal is quickly building an electronic two-wheeler business via Ola Electric.
The company needs a diverse portfolio of businesses that goes beyond cab aggregation and rides. This may be the reason that they are trying to revive its online food and grocery delivery businesses after the pandemic.
Ola is planning and aims to gain the same amount of success that other food delivery apps like Swiggy has had with Instamart. It used to operate as a grocery marketplace where Swiggy used to aggregate stores while Instamart now has a more efficient dark store model and stocking essentials.
According to reports, Ola has already kept a whopping budget of Rs 250 crore for the grocery delivery business.
They had planned to set up around 300 dark stores for grocery and convenience delivery, just ahead of its $2 billion IPO. The company now has its own 55 cloud kitchens and plans to expand the number.
The company plans to clock a revenue run rate of around Rs 100 crore per month before the IPO takes its place.