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Ola makes a new foray into the food delivery space with govt-backed ONDC

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In its fourth endeavor in the realm of food delivery, the mobility giant Ola has partnered with the government-supported Open Network for Digital Commerce (ONDC) to offer food delivery services. While the company initiated a trial run of this service within its ride-hailing app back in August, it has now become accessible to a wider audience of users.

According to sources, the company has been conducting trials of the feature for more than a month within its app, initially limiting access to employees and a select group of users, using the name ‘Ola ONDC food’.

“This is big for Ola, this is likely to compete with Swiggy and others… This feature is not available for everyone, only a handful of users for now and is likely to be open for all, ” said an industry source aware of the development.

Efforts to contact Ola for a response were unsuccessful.

Its most recent endeavor took place in 2022, when it had intentions to merge its cloud kitchen enterprise with a 10-minute grocery delivery service.

The initial effort was made in July 2015, when the ride-hailing startup introduced a separate online grocery store in Bengaluru, and in the same year, in March, launched a food delivery app.

In under nine months, Ola decided to close down both Ola Store and Ola Foods without providing extensive explanations. Nevertheless, sources informed Moneycontrol that Ola has no plans to introduce a distinct delivery app.

“Collaborating with ONDC is a wise choice for Ola. They may noy roll out a separate app, ” The person quoted above said.

Reports also indicate that Bhavish Aggarwal, the CEO of Ola, mentioned during his address at the India Internet Day event on August 24 in Bengaluru, that the company was in the process of aligning itself with the government-supported network.

ONDC has been actively bringing mobility industry participants on board. Through its open mobility initiative, it is anticipated to enhance the customer experience by allowing them to book rides through their preferred apps and integrating diverse transportation options, such as metro, auto-rickshaws, and buses. Recently, Namma Yatri, a platform launched by Juspay Technologies in collaboration with Bengaluru drivers, joined this initiative.

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