Ola has entered the 10-minute food delivery race with the launch of Ola Dash. This comes at a time when multiple companies have started quick food delivery services.
The service is currently operational in Bengaluru, with the company offering discount on food orders, and waiver of delivery charges. The platform is featuring restaurants like Eatfit, Freshmenu, BowlSoul, and GreenCraving, among others.
Ola, under the same name of Ola Dash, had launched its quick commerce service, which was later shut down to shift focus back to mobility business.
The competition in the rapid food delivery service segment is heating up in India. In just this month, Magicpin through MagicNow and Zomato through Bistro have entered the space. Swiggy's Bolt and Zepto Cafe are already functional with their services. New startups like Swish – funded by Accel partners – are also competing in the race.
In its quarterly results commentary, the recently-listed Swiggy noted that 5% of its revenue is coming from Bolt, its rapid food delivery service, which underscores the potential in the market. The company launched its service in October, delivers within 2 km radius, and has 10 lakh items on the menu.
Similarly, MagicNow, which also launched its rapid delivery service on Tuesday, is providing service within 1.5-2 km radius and will be launched in Bengaluru, Hyderabad, Mumbai, Chennai, Pune and the Delhi-National Capital Region.
Zepto Cafe, which rapidly emerged as a key player in the segment, currently operates across 15% of Zepto's 600 dark stores. The platform processes over 30,000 orders daily and has reached an annualised revenue run rate of ₹160 crore. Reportedly, Zepto Cafe aims to scale to over 600 stores and achieve a Rs 1,000-crore revenue run rate by next year. The company is also planning to launch "100 new cafes a month".
In the rapid food delivery segment, Zomato and Zepto operate through a separate application for 10-minute food delivery service. However, Swiggy and Ola have integrated the offering within their main apps.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
