Summary
Ola Mobility, led by Bhavish Aggarwal, is venturing into ecommerce by integrating groceries, fashion, and apparel options into its app through collaboration with the Open Network for Digital Commerce (ONDC). The move aims to tap into ONDC’s vast network of retailers. Ola’s expansion into ecommerce follows its initial partnership with ONDC for a food delivery platform and last-mile logistics services. This move positions Ola to compete with established players like Pai Platforms and Swiggy’s Instamart in groceries and startups like 82°E and Beyoung in fashion. The decision comes as Ola streamlines its overseas operations to focus on the Indian market.
Ola Ventures into Ecommerce: Expanding Horizons Beyond Ride-Hailing
In a bold move to diversify its offerings, Ola Mobility, led by Bhavish Aggarwal, is stepping into new territory by delving into ecommerce, leveraging its collaboration with the Open Network for Digital Commerce (ONDC).
Reportedly, Ola is gearing up to introduce a range of options for purchasing groceries, fashion, and apparel within its app. By integrating with ONDC, Ola aims to capitalize on the extensive network of grocers and fashion brands already established across various cities.
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For this endeavor, Ola has enlisted the services of Magicpin as its technology provider, enhancing its capabilities to cater to the evolving needs of its users. Inc42 has reached out to ONDC for confirmation, and updates on this development will be provided upon receiving a response.
Ola’s journey with ONDC began with the pilot launch of a food delivery platform in September 2023, initially accessible only to its employees but later extended to the public. Subsequently, the company expanded its collaboration to offer last-mile logistics services for various categories, including food delivery, grocery shopping, and pharmaceuticals.
The foray into groceries and fashion is expected to strengthen Ola’s logistics operations within the ONDC ecosystem. With this expansion, Ola will be competing with established players like Pai Platforms (Paytm Ecommerce), Swiggy’s Instamart, and Blinkit in the grocery sector, and with startups such as 82°E, Beyoung, and Snitch in the fashion ecommerce segment.
Interestingly, Ola’s rival in the ride-hailing business, Uber, has also ventured into the ONDC arena. In February, Uber inked an agreement with ONDC to explore integration possibilities, aiming to diversify its range of mobility offerings.
These expansion plans come amidst Ola’s strategic maneuvers in streamlining parts of its ride-hailing business. Earlier this month, the company announced the cessation of its overseas operations in the UK, New Zealand, and Australia, signaling a renewed focus on the Indian market, which holds significant expansion opportunities.
As Ola embarks on its ecommerce journey, the landscape of digital commerce in India is poised for further evolution, with competition intensifying and consumers benefiting from enhanced choices and convenience.
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