Ola is the biggest rival of Uber; it has always tried hard to surpass it in every way. The latest move of Ola is sure to create a wave of insecurity around Uber. Well, the riding app has acquired Foodpanda’s India business, thereby giving tough competition to UberEats.
The percentage of foodies in India is growing at a very fast pace and so, this merger is surely going to work well in India.
Earlier, Foodpanda belonged to Delivery Hero, one of the biggest startups in Europe and now, Ola has shown its power by acquiring it. Ola hasn’t revealed any details about the shares; however, if reports are to be believed, Foodpanda has paid somewhere around $50 million.
This is not it; Ola has committed that it will chip in $200 million in Foodpanda India; this is considered to be the largest fund infusion in the company as of now.
Bhavish Aggarwal spoke about this merger and 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 $200 million in Foodpanda India will help the business be focused on growth by creating value for customers and partners.”
Pranay Jivrajka, the Founding partner of Ola, has become the CEO of this unit.
Let’s see what this merger brings for us; Zomato and Swiggy surely have a reason to worry now!