Ola has acquired food delivery platform Foodpanda India from its German parent Delivery Hero in an all-stock deal. Ola is a major cab service provider in India. In one of the statements, it has promised to infuse $200 million in Foodpanda India to expand the operations.
With this deal, Ola will make entry into online food ordering and delivery segment. In fact, it has tested its fate in 2014 with Ola Café but didn’t get success. This partnership is believed to help the business of Foodpanda India grow and make it the choice of most of people in the country. This new deal happens after cab service provider raised a huge $1.1 billion from SoftBank Group and Tencent Holdings.
More about Foodpanda
Foodpanda India was set up as the local unit of Berlin-based Foodpanda GmbH in 2012. Foodpanda GmbH is a Rocket Internet portfolio firm. There are certain challenges before Foodpanda in India like given service quality issues, layoffs and ceding of market share to rivals. In year 2016, Foodpanda GmbH was acquired by Delivery Hero but the deal did not have any substantial impact on India operations.
What chief executive officer at Delivery Hero says about this deal
“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 Östberg, chief executive officer and co-founder at Delivery Hero.
