Ola has now suspended the food delivery business of the Foodpanda, which the cab aggregator acquired in the year 2017, according to the report which has been revealed. Ola has also laid off around 40 employees and terminated the contracts of most of its 1500 food delivery business, according to the report.
From so many months, Ola is also struggling to keep the FoodPanda business floats as there is a lot of competition in the market such as the Zomato, Swiggy, UberEats, which have already acquired the major market portion.
According to the news, Ola wants to shift its focus from the restaurants and food delivery to its own brands and in house cloud kitchens businesses, which it launched after the FoodPanda acquired the HolaChef, a Mumbai based food technology startup, in the month of October last year.
The report quoted one of its sources, “They (Ola) have realized they can’t burn money like Swiggy and Zomato, which is why they only want to do in-house brands. Over the last few months, Foodpanda has been scaling down its marketplace.”