Ola, run by ANI Technology Pvt. Ltd has acquired food delivery start-up Foodpanda India from its German parent Delivery Hero AG in an all-stock deal that will see the ride-hailing major infuse $200 million in Foodpanda’s India operations
Under the package, Foodpanda’s India business will be used in Ola in trade for the latter’s stock. The share-swap setup and information on the transaction weren’t disclosed.
The deal signifies Ola’s foray into the online food ordering and delivery, a business formed in India by famous brands Zomato and Swiggy, and one where Ola’s biggest competitor, Uber, has been making strides lately through its product UberEATS. Ola too examined what it called Ola Cafe in 2014, but shut off the unit soon after.
The cooperation between Ola Foodpanda India unlocks the power of a relationship that will assist Foodpanda India to grow as the utmost preferred online food delivery service in the country, Ola said in a statement Tuesday.
“Our commitment to invest $200mn in Foodpanda India can help the business enterprise be centred on progress by creating value for customers and associates. With Delivery Hero’s global leadership Ola’s platform capabilities with unique local insights, this relationship exists out of power,” said Bhavish Aggarwal, co-founder and CEO at Ola.
The Uber also announced the departure of Saurabh Kochhar, who going Foodpanda India as its CEO until recently. Pranay Jivrajka, a founding partner at Ola, would be the interim CEO of the business enterprise unit.
The offer comes calendar months after Bengaluru-based Ola lifted an enormous $1.1 billion (another $1 billion will probably come in soon) from SoftBank Group and Tencent Holdings to reinforce its position in India.
Mobility start-ups with terabytes of data on local routes and consumer app utilization patterns are generally thought to be better located in owning a delivery business. In 2014, San Francisco-based Uber launched UberEATS as a pilot job and has since used the service to 27 countries–and seven Indian places in quick succession since May this season.
Foodpanda India was set up as the neighbourhood product of Berlin-based Foodpanda GmbH, a Rocket Internet stock portfolio organization, in 2012. The company has had a hardcore stint in India, given service quality issues, layoffs and ceding of market share to rivals.
This past year, Delivery Hero acquired Foodpanda GmbH however the deal didn’t have a considerable trickle-down impact on India businesses, Foodpanda India’s Kochhar got said in an interview with Mint.
With this offer, both Ola and Delivery Hero have hinted at a more collaborative partnership.
“The collaboration with Ola allows us to expand consolidate markets where it strategically makes to collaborate with leading local players. At the same time, we consider our stake in Ola as an extremely valuable advantage, while Ola’s investment commitment in Foodpanda India is a clear and confident sign to the Indian market,” said Niklas Östberg, chief executive officer and co-founder at Delivery Hero.