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Ola cuts investment in Foodpanda, to narrow focus on cloud kitchen private labels

Jan 28, 2019 by The Passage Team
Ola cuts investment in Foodpanda, to narrow focus on cloud kitchen private labels

India’s largest ride hailing app Ola has more than halved its cash burn at its food business Foodpanda and plans to make its private label brands the cornerstone for growth, even as the food tech war gets more aggressive, driven primarily by deep pocketed rivals Swiggy, Zomato and UberEats' continued discounting, three people directly aware of the company’s plan told ET.

According to the new mandate, Foodpanda will focus on running the business more cost efficiently by focusing on its own private labels and cloud kitchens, which include The Great Khichdi Experiment, Lovemade and FLRT brands, and continue to leverage Ola’s customer base.

“In January, Foodpanda cut marketing and customer acquisition costs by 2/3rds, in line with Ola's de-prioritisation plan for the business in terms of investment. The internal expectation is orders will fall by 60% but business will grow more efficiently,” said one person, adding that Ola plans to focus on scaling its payments, lending, and core transportation portfolio, which includes scooters, international business and electric vehicles.

Source: Economic Times

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