After Uber made entry ito food delivery business via Uber eats, home grown cab aggregator Ola has stepeed ino the same foray by acquiring Food Panda. The company announced a deal to acquire Foodpanda’s business from its parent company DeliveryHero for an undisclosed sum.
Ola said it is committing an investment of $200 million into the food delivery business. This deal would include the transfer of Foodpanda’s India business in exchange for Ola stock. IT would be an acquisition deal.
DeliveryHero acquired Foodpanda from Rocket Internet at the end of last year, primarily to extend its food-ordering business into Asia, the Middle East and parts of Eastern Europe.
The company in a statement announced that Saurabh Kochhar, who headed Foodpanda India, has “decided to move on to pursue other opportunities”.
“The partnership with Ola will allow us to further consolidate markets where it strategically makes sense to collaborate with leading local players. At the same time, we consider our stake in Ola as a very valuable asset, while Ola’s investment commitment in Foodpanda India is a clear and confident signal to the Indian market,” said Niklas Ostberg, CEO and co-founder of Delivery Here AG.