Home Business Update: Ola denies shutting Foodpanda’s shipping biz, says it is ‘repurposing’ enterprise to awareness on kitchens
Business - May 28, 2019

Update: Ola denies shutting Foodpanda’s shipping biz, says it is ‘repurposing’ enterprise to awareness on kitchens

As part of our ongoing enterprise repurposing tasks, we are centered on building a portfolio of very own food manufacturers and curated food services through our fast expanding network of kitchens. Many of those services are already available in all essential cities thru the Ola and Foodpanda apps. We keep spending money on expanding our centers and kitchens, as well as our portfolio of food services for clients. We stay devoted to our project of constructing an advanced meals revel in for millions of our customers

 

Today at 11:30 am:

Ola has suspended Foodpanda’s delivery enterprise and has laid off 40 employees and 1,500 transport executives, the business enterprise is now switching to in-residence manufacturers and cloud kitchens simplest, as in keeping with a couple of reviews (see here and here). Foodpanda turned into reportedly unable to continue competing with heavyweights Zomato and Naspers-backed Swiggy, each of that have been burning cash with the aid of offering reductions and increasing services to greater cities. It is well worth noting that in December, Foodpanda claimed to have 60,000 eating places listed and servicing in one hundred towns. Between September and December 2018, it had improved to kind of 60 places. It said losses of Rs 228 crore for FY17-18, up with the aid of eighty% from losses of Rs forty-five crore the previous yr.

What now? The contemporary idea at Foodpanda is to interchange consciousness on cloud kitchen enterprise which include its own manufacturers, in preference to being a marketplace. It currently owns 4 private labels – the Great Khichdi Experiment, FLRT, Lovemade, and Grandma’s Kitchen – and lists over 50 cloud kitchens. These function in Bangalore, Delhi, Pune, Mumbai, and Chennai. Its reportedly in talks with concierge carrier Dunzo and Zomato to relist its cloud kitchen brands, specializing in in-residence manufacturers is manner to gain better earnings because the aggregator platform keeps forty% of the cloud kitchen’s earnings. It is even hiring for the cloud-kitchen phase, per Business Insider.

What we recognise from earlier than: At its height in September 2018, Foodpanda became processing 3 million orders a month, while Zomato and Swiggy were processing 30 million in line with month. Ola had received Foodpanda India from German discern DeliveryHero in December 2017 and invested Rs 400 crore within the business enterprise. Ola first meals transport initiative ‘Ola Cafe’ had failed and close operations inside a 12 months of launch.It even appointed new leadership for method and marketing.

UberEats is still round . . : The food delivery enterprise in India has a fourth wheel – UberEats. Parent enterprise Uber has attempted to sell off its UberEats commercial enterprise in India to either Zomato and Swiggy, however has failed to get a customer.