Popular ride-sharing app and Uber’s closest rival Ola has proclaimed its debut in India’s food space. The mobility platform, on Tuesday, announced its partnership with Germany-based Delivery Hero Group. The deal includes the transfer of Foodpanda’s India business in exchange for an undisclosed amount Ola shares.
Ola has also committed to invest $200million into the Foodpanda India business. Ola says that this is by far the largest fund investment in India‘s food delivery business. Further, the company has announced that Saurabh Kochhar, who was the CEO of Foodpanda, has decided to move on to pursue other business. Ola’s founding partner Pranay Jivrajka will serve as the interim CEO until a replacement is found.
While commenting on the partnership, Bhavish Aggarwal, co-founder, and CEO at Ola, said, “I’m excited about our partnership with Delivery Hero as we team up to take Foodpanda India to the next level. As one of India’s pioneers in the food delivery space, Foodpanda has come to be a very efficient and profit-focused business over the last couple of years. Our commitment to invest $200mn in Foodpanda India will help the business 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. I look forward to welcoming the Foodpanda India team to the Ola family.”
He added, “I also thank Saurabh Kochhar for building a wonderful team at Foodpanda India over the last couple of years and wish him the very best in his new endeavours.”
Delivery Hero which is one of the biggest startups in Europe, acquired Foodpanda last year in December. Both Foodpnada and Delivery Hero are backed by e-commerce firm Rocket Internet that invested 800 million Euros in Deliver Hero in the year 2015 and holds more than 40 per cent in Foodpanda.
Tndia Today contributed to this report.