10 March, 2016, Bangalore: In an interesting move, Ola has shut down its food delivery business Ola Café. The development came just one year after the company floated its food delivery service in the market. It has taken down Ola Café option from its app; the service was available in the cities such as Delhi, Mumbai, Bangalore and Hyderabad.
There were some speculations in the market about Ola might shut down Ola Café and Ola Store in a month. According to the sources close to the news, “Ola Café scaled up in the first few months after the launch, it failed to meet expectations as the vertical faced stiff competition from other food delivery businesses such as Swiggy (Bundl Technologies Pvt. Ltd), Tinyowl Technology Pvt. Ltd and Zomato Media Pvt. Ltd.”
Ola Café was designed to offer quick delivery to its customers. The company concentrated on giving its customers selected food items to choose from instead of giving them a wide range. It has shortlisted few selected restaurants that falls in the vicinity of its consumers so that it can offer speedy delivery.
Ola’s cab drivers used to buy food from the partner restaurants and drove around, delivering whenever there was an order from a nearby locality, a source said. However, after generating healthy business for its company for few months, Ola Café’s profits started declining and that forced the company to take the service out of its network.