New Delhi [India], Dec 19 (ANI): Popular taxi aggregator Ola on Tuesday announced its acquisition of Foodpanda's India business from German-based Delivery Hero Group, and has committed to investing USD 200 million in the food delivery platform's India faction.
On the sidelines of the deal, Saurabh Kochhar, who was the CEO of Foodpanda India until recently has decided to move on to pursue other opportunities. Subsequently, Pranay Jivrajka, Founding Partner at Ola, has been appointed as interim CEO of this business unit, supported by the existing leadership team at Foodpanda India.
Talking about the investment, Bhavish Aggarwal, co-founder and CEO at Ola, said, "Our commitment to invest USD 200 million 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."
The development comes after over a year of the closure of Ola Cafe, Ola's entry into the food business. The partnership could also be crucial in terms of being a response to its rival Uber's food delivery business, UberEats.
However, Foodpanda will also have benefit from the deal, as it unlocks the power of a partnership that will help drive Foodpanda India's growth in the online food delivery service amid stiff competition in the market from its contemporaries such as Zomato, Swiggy and others.
Meanwhile, Ola also joined forces with Delivery Hero, and will continue to collaborate on building the online food delivery ecosystem in India.
"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," said Niklas Östberg, Chief Executive Officer and Co-founder of Delivery Hero AG. (ANI)