Ola is set to launch its grocery delivery service nationwide through the Open Network for Digital Commerce (ONDC).
The initiative aims to commence deliveries within the coming days, leveraging ONDC’s extensive reach.
Previous Ventures into Grocery Delivery
This isn’t Ola’s first foray into grocery delivery. Initially launched in July 2015 in Bangalore, Ola’s standalone online grocery store utilized cab drivers for deliveries from 9 am to 11 pm.
Despite initial efforts, Ola Store and Ola Foods closed within nine months. In 2021, Ola re-entered the market with Ola Dash, offering services in Mumbai-Bangalore through 15 dark stores, but ceased operations after a year.
ONDC’s Role in Accelerating E-commerce
Joined recently for food delivery services, Ola will soon expand its operations to include grocery delivery through ONDC, a government-backed platform aimed at increasing e-commerce penetration in India to 25% within two years, with an estimated merchandise value of $48 billion.
Partnering with the Bill and Melinda Gates Foundation, ONDC also supports women entrepreneurs, aiming to boost their incomes by over 25%.
Rapid Growth and Transaction Volume
ONDC has witnessed exponential growth, with expectations of over 1 crore transactions this month, a fivefold increase year-over-year.
May saw 50 lakh transactions, including significant volumes in ride-hailing and retail categories such as food, groceries, fashion, and electronics.
Despite food’s share dropping to 20% from 76% last year, food delivery and grocery categories each received over 10 lakh orders last month alone.
