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 Beyond Ride-Hailing: Expands into Ecommerce with ONDC Collaboration
Ola Mobility, under the leadership of Bhavish Aggarwal, is embarking on a new journey, diversifying its offerings into the realm of ecommerce through a strategic collaboration with the Open Network for Digital Commerce (ONDC).
The move, as reported by ET, signifies Ola’s foray into providing users with the convenience of purchasing groceries, fashion, and apparel directly within its app. By integrating with ONDC, Ola aims to leverage an extensive network of grocers and fashion brands established across various cities, thereby enhancing the shopping experience for its users.
To facilitate this venture, Ola has enlisted Magicpin as its technology service provider, indicating a robust technological infrastructure to support its ecommerce ambitions. Inc42 has reached out to ONDC for confirmation, and updates on this front are expected soon.
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Ola’s collaboration with ONDC began with the pilot launch of a food delivery platform in September 2023, initially accessible only to its employees but now available to the public. Subsequently, the partnership expanded to include last-mile logistics services for various categories, including food delivery, grocery shopping, and pharmaceuticals.
The expansion into groceries and fashion is poised to strengthen Ola’s logistics operations within ONDC, positioning it to compete with established players like Pai Platforms (Paytm Ecommerce), Swiggy’s Instamart, and Blinkit in the grocery sector, and 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, signaling a trend among mobility giants towards diversifying their offerings.
These expansion plans unfold amidst Ola’s strategic decision to streamline its ride-hailing business by announcing the closure of its overseas operations in the UK, New Zealand, and Australia earlier this month. This move underscores Ola’s renewed focus on the Indian market, where substantial growth opportunities beckon.
With Ola’s entry into the ecommerce landscape and its ongoing collaboration with ONDC, the company is poised to redefine the boundaries of convenience and accessibility for users across India.
