Diversifying into Ecommerce with ONDC Collaboration

Diversifying into Ecommerce with ONDC Collaboration


Diversifying into Ecommerce with ONDC CollaborationOla Mobility, led by Bhavish Aggarwal, is venturing into ecommerce by integrating groceries, fashion, and apparel options into its app through collaboration with the Open Network for Digital Commerce (ONDC). The move aims to tap into ONDC’s vast network of retailers. Ola’s expansion into ecommerce follows its initial partnership with ONDC for a food delivery platform and last-mile logistics services. This move positions Ola to compete with established players like Pai Platforms and Swiggy’s Instamart in groceries and startups like 82°E and Beyoung in fashion. The decision comes as Ola streamlines its overseas operations to focus on the Indian market.

Diversifying into Ecommerce with ONDC Collaboration

Ola, the renowned mobility giant led by Bhavish Aggarwal, is embarking on a transformative journey into the realm of ecommerce, expanding its horizons and offerings with the assistance of the Open Network for Digital Commerce (ONDC) collaboration.

Reports from ET indicate that Ola is poised to introduce a range of purchasing options including groceries, fashion, and apparel directly within its app. By integrating with ONDC, Ola aims to harness the extensive network of grocers and fashion brands spread across various cities.

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For this ambitious endeavor, Ola has enlisted the expertise of Magicpin as its technology service provider. While awaiting confirmation from ONDC, Inc42 remains diligent in updating the story as necessary.

Ola’s initial foray into ONDC began with a food delivery platform pilot in September 2023, initially accessible only to its employees but now available to the wider public. Subsequently, the collaboration expanded to encompass last-mile logistics services spanning various categories such as food delivery, grocery shopping, and pharmaceuticals.

This strategic move into groceries and fashion is expected to fortify Ola’s logistics operations within ONDC, positioning the company as a formidable competitor in the ecommerce landscape. With this expansion, Ola enters into competition with established players like Pai Platforms (Paytm Ecommerce), Swiggy’s Instamart, and Blinkit in the grocery sector, while challenging startups like 82°E, Beyoung, and Snitch in the fashion ecommerce segment.

Interestingly, Ola’s rival in the ride-hailing business, Uber, has also ventured into the ONDC arena. In February, Uber inked an agreement with ONDC to explore integration possibilities aimed at broadening its range of mobility offerings.

These ambitious expansion plans coincide with Ola’s strategic reevaluation of its ride-hailing business. Earlier this month, the company announced the cessation of its overseas operations in the UK, New Zealand, and Australia, signaling a renewed focus on the Indian market, ripe with significant expansion opportunities.


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