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Ola gobbles up Foodpanda India to fatten up in competitive food delivery market

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By Taruka Srivastav, Reporter

December 20, 2017 | 3 min read

Indian cab hailing service Ola has snapped up Foodpanda India from its German head company Delivery Hero AG in an all-stock deal to combat rival Uber's UberEats.

Ola cabs

Ola gobbles up Foodpanda India to fatten up in competitive food delivery market

As part of the deal, SoftBank backed Ola will invest $200m in Foodpanda India’s operations. Foodpanda’s India business will be handed over to Ola in exchange for the latter’s stock.

The deal further aims to establish Foodpanda as the most preferred online food delivery service in the country.

Pranay Jivrajka, founding partner at Ola, has been appointed as interim chief executive officer of this business unit on the exit of Saurabh Kochhar, who was the chief executive officer of Foodpanda India.

Bhavish Aggarwal, co-founder and chief executive officer 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 $200m 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.”

Niklas Östberg, chief executive officer and co-founder of Delivery Hero AG said: “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.“

"The Foodpanda India team has done a tremendous job building the business and we look forward to supporting them and the Ola team in the future.”

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