Ola acquires Foodpanda India business plans to compete with rival UberEats
Riding company Ola has now acquired Food panda. Ola has purchased Food panda’s local business and in return of Ola equity. Along with this acquisition, the company announced that they will also invest 200 million dollars more in the Food panda’s business in coming years.
In the announcement, Ola said that, “Foodpanda India will benefit from Ola’s scale and efficiencies as a platform, also having leveraged learnings from Delivery Hero’s global best practices. Ola and Delivery Hero will continue to collaborate on building the online food delivery ecosystem in India”
The CEO of Foodpanda, Saurabh Kochhar has moved into other business and due to this, the founding partner of Ola Pranay Jivrajka has been appointed as interim CEO of Foodpanda.
There were many speculations about this acquisition because of the entry of Uber into this industry in the name of UberEATS. Uber is now providing the online food delivery service and same has now been planned by Ola through the acquisition of Foodpanda. The company has also had some tie ups with Zomato recently.
Co-founder of Ola said in his statement, “As one of India’s pioneers in the food delivery space, Food panda has come to be a very efficient and profit-focused business over the last couple of years”. He also added that, “With Delivery Hero’s global leadership and Ola’s platform capabilities with unique local insights, this partnership is born out of strength.”