Ola is reducing its food delivery aspirations once again. According to sources close to the situation, the mobility company’s cloud-kitchen operation under Ola Foods has halted expansion ambitions and is looking to sell most of its kitchen equipment at a 30-50 percent discount. As per Economic Times, it has examined an email sent to potential buyers about the products for sale. Khichdi Experiment, Biryani Experiment, Paratha Experiment, Bowlsome, Daily Diner, Nashta Express, Gulpp, and That Pizza Place are among Ola Foods’ brands.
According to a person familiar with the situation, the Bengaluru-based firm had planned to considerably grow its cloud kitchen business and run around 500 locations across the country. As of 2020, it had close to 50 cloud kitchens.
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Ola Foods’ cloud-kitchen brands failed to gain traction, according to two people familiar with the situation. “Running a business is not simple. ” As the company focuses on Ola Electric (its EV unit), managerial bandwidth was also an issue,” one of the people added. According to three persons who shared but requested anonymity, Ola had approached them to sell off its cloud-kitchen equipment.
According to another person who was reached on the condition of anonymity, Ola was offloading items but not the business independently.
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“It is not like they are out to sell the business or the brand… but if you are looking for a buyer for the machines, equipment and assets then it means it is not a priority,” another person shared.
Due to their existing presence at those locations and the availability of cheaper equipment on the market, all three parties eventually declined the offer.
Swiggy, a competitor, is also looking into speedier meal delivery, though it’s unclear if it aims for 10 minutes. Meanwhile, Zepto, the newest ultra-fast grocery delivery company, is experimenting with its Zepto Cafe, which provides ready-to-drink coffee, tea, and packaged snacks. The combination of Ola Foods with Ola Dash reflects the company’s expanded focus on fast food and grocery delivery. Ola competes with Swiggy Instamart, Zepto, Blinkit, Dunzo, and BB Now in the ultrafast grocery industry.
The Ola Foods section of the Ola app states that it is unavailable in prime Bengaluru locations.
Ola Foods closed many food stations within the Bengaluru office, according to a former Ola employee. As per a current employee, only Biryani Experiment and That Pizza Place were operating during lunch hours.
