Ola Expands Offerings, Partners with ONDC for Ecommerce

Ola Expands Offerings, Partners with ONDC for Ecommerce


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 Expands Offerings, Partners with ONDC for Ecommerce

Ola Mobility, led by Bhavish Aggarwal, is embarking on an exciting new journey into the realm of ecommerce, marking a significant diversification of its offerings. Leveraging the collaborative power of the Open Network for Digital Commerce (ONDC), Ola is set to introduce a range of shopping options within its app, including groceries, fashion, and apparel.

This strategic move, as reported by ET, signals Ola’s intent to tap into a vast network of grocers and fashion brands across various cities. By integrating with ONDC, Ola aims to streamline the shopping experience for its users, providing them with access to a diverse array of products at their fingertips.

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To facilitate this endeavor, Ola has partnered with Magicpin as its technology service provider. While awaiting confirmation from ONDC, Ola is gearing up to expand its ecommerce footprint, building upon its successful foray into food delivery through ONDC in September 2023.

Initially limited to employees, Ola’s food delivery platform has now been made available to the public, showcasing the company’s commitment to providing convenient solutions for everyday needs. Expanding its collaboration with ONDC, Ola now aims to offer last-mile logistics services for various categories, including food delivery, grocery shopping, and pharmaceuticals.

With this bold move into groceries and fashion, Ola is poised to strengthen its logistics operations within ONDC, setting the stage for fierce competition with established players in the ecommerce landscape. In the grocery sector, Ola will contend with platforms like Pai Platforms (Paytm Ecommerce), Swiggy’s Instamart, and Blinkit, while in fashion ecommerce, it will face off against startups such as 82°E, Beyoung, and Snitch.

Interestingly, Ola’s rival in the ride-hailing business, Uber, has also entered the ONDC arena, signaling a broader trend of mobility companies diversifying their offerings. In February, Uber inked an agreement with ONDC to explore integration possibilities aimed at expanding its range of mobility offerings, reflecting the industry’s shifting dynamics.

These expansion plans come amid Ola’s strategic restructuring, as the company recently announced the closure of its overseas operations in the UK, New Zealand, and Australia. This move underscores Ola’s renewed focus on the Indian market, where significant expansion opportunities abound, reaffirming its commitment to growth and innovation in its home turf.

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