Ola Ventures into Groceries and Fashion with ONDC

Ola Ventures into Groceries and Fashion with ONDC


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 Ventures into Groceries and Fashion with ONDC

Ola, under the leadership of Bhavish Aggarwal, is embarking on a bold new venture, expanding its horizons beyond ride-hailing into the realm of ecommerce. Leveraging the collaboration with the Open Network for Digital Commerce (ONDC), Ola aims to revolutionize online shopping by introducing options for purchasing groceries, fashion, and apparel directly within its app.

Partnering with technology service provider Magicpin, Ola is set to integrate shopping features seamlessly into its platform, tapping into ONDC’s extensive network of grocers and fashion brands across various cities. While awaiting confirmation from ONDC, Ola’s move signifies a strategic step towards enhancing user experience and diversifying its service offerings.

Also read: Byju’s Founder Raveendran to Oversee Day-to-Day Operations

This expansion builds upon Ola’s earlier foray into the ecommerce space with a food delivery platform piloted in September 2023, which has now been made accessible to the public. The company’s collaboration with ONDC has since expanded to encompass last-mile logistics services for food delivery, grocery shopping, and pharmaceuticals, demonstrating Ola’s commitment to evolving with the changing needs of consumers.

By venturing into groceries and fashion, Ola aims to strengthen its logistics operations within ONDC, positioning itself to compete with established players like Paytm Ecommerce, Swiggy’s Instamart, and Blinkit in the grocery sector, and startups such as 82°E, Beyoung, and Snitch in the fashion ecommerce segment.

Interestingly, Ola’s rival in the ride-hailing business, Uber, has also recently entered the ONDC arena, signaling a growing trend of mobility companies diversifying their offerings. Uber’s agreement with ONDC in February aimed to explore integration possibilities for expanding its range of mobility offerings, mirroring Ola’s strategic move towards ecommerce.

These expansion plans coincide with Ola’s decision to streamline its ride-hailing business, with the recent announcement of the closure of its overseas operations in the UK, New Zealand, and Australia. This shift reflects a renewed focus on the Indian market, where Ola sees significant expansion opportunities amidst its broader vision for growth and innovation.

Leave a Reply

Your email address will not be published. Required fields are marked *