Ride-hailing giant Ola is making its third foray into the online grocery delivery market, this time leveraging the Open Network for Digital Commerce (ONDC) platform. The company aims to launch its service within the next few days, as per a Moneycontrol report.
This move comes after Ola’s previous attempts with standalone grocery stores and a food delivery app with dark stores, both of which were discontinued. Ola is not new to ONDC, having partnered with the platform last year for food delivery. It has already gained significant traction, contributing to over 30% ofONDC food orders in Bengaluru and Delhi-NCR.
Ola’s Strategic Partnership with ONDC
By partnering with ONDC, a government-backed initiative aimed at democratizing e-commerce, Ola is strategically positioning itself to tap into a growing customer base. ONDC has experienced a surge in growth in recent months, attracting new sellers and facilitating increased transactions.
Ola’s existing expertise in food delivery and logistics, particularly its use of electric vehicles (EVs) for deliveries, is expected to play a crucial role in this new venture. The company is already offering EV-based logistics services to smaller sellers on the ONDC network at competitive prices.
Stiff Competition Ahead
The online grocery delivery market in India is highly competitive, with established players like Blinkit and Swiggy Instamart dominating the scene. However, Ola’s strong brand recognition and extensive experience in the food delivery sector could give it an edge.
Ola’s re-entry into the online grocery delivery space through ONDC is a significant development. It remains to be seen how the company will differentiate itself from existing players and what innovative strategies it will employ to capture a share of this rapidly growing market.
