Ola pauses food delivery service, removes 'Foods' from app

Ola Consumer has paused operations of Ola Foods, Moneycontrol reported citing sources.

The service is no more available on the app upon an update. On the older versions of the app, the cloud kitchen business, which also operated through the Open Network for Digital Commerce (ONDC), is not accepting orders.

According to the report, operations are temporarily paused with the company re-evaluating plans and working on the business plan.

However, it is not clear whether the ride-hailing app will restart Ola Foods or quit the business.

Ola, in the last two years, has shrunk several several experiments outside its ride hailing and e-scooter business, including used cars and quick commerce pilots under Ola Cars and Ola Dash.

Ola's struggle with food delivery

This was not the first attempt Ola made in the food delivery segment. The Bhavish Aggarwal-led company first forayed into the business in 2015. In 2019, it started Ola Foods as a cloud-kitchen with in-house brands and delivery through Ola’s logistics network.

The latest attempt in the segment was in 2023 when the company joined the government-backed ONDC to provide food delivery services on its ride-hailing app.

By 2024, the Bengaluru-based firm expanded the food delivery service to 100 cities in December 2024. However, with limited orders, Ola has now paused the service.

India's food-delivery and cloud-kitchen space continues to be dominated by Swiggy, Zomato.

Meanwhile, Ola's competitors have entered the food delivery segment. Ride-hailing platform Rapido launched a standalone food delivery app Ownly in August. The service is available in limited regions.