Ola has paused its food delivery operations — the “Foods” section has disappeared from its app, and orders are no longer being accepted. The company is reportedly reviewing the future of the category
This move appears to be part of a broader restructuring within Ola. The company is reassessing several non-core verticals while double-downing on its core ride-hailing business and other strategic priorities.
There is no official press release yet from Ola about this development — the information comes from “people aware of the matter.”
History of Ola’s Food Business: Attempts & Retreats
- In 2015, Ola launched its first food venture under the name Ola Cafe in cities like Mumbai. The plan was to deliver meals in under 20 minutes.
- However, by March 2016 Ola shut down Ola Cafe and its grocery-delivery arm Ola Store due to poor uptake and high delivery costs
- Later, in December 2017, Ola purchased the India arm of Foodpanda — signalling a second attempt at food delivery. The company invested heavily to revive the segment.
- Despite initial traction (boosted by discounts), Ola struggled against rivals like Swiggy and Zomato. By mid-2019, it suspended Foodpanda’s delivery operations and laid off most delivery staff.
This isn’t the first time Ola has pulled back from food — past attempts failed due to stiff competition and thin margins.
What’s Changing Now (2025)
The latest pause suggests Ola may be reconsidering its place even in its revived food-delivery vertical. For customers, this means:
- The option to order food on Ola has disappeared for now.
- Cloud-kitchen brands earlier offered via Ola or ONDC may also be impacted (depending on company decisions).
- Uncertainty remains whether Ola will revive food delivery in a modified form or exit the business altogether.
For the industry, Ola’s exit could consolidate market share further in favour of dominant players — reinforcing barriers for smaller or newly entering food-delivery services.
What Led to This Decision — Key Challenges
Several factors likely contributed:
- Low demand / user adoption: Previous stints in food delivery saw limited traction.
- High delivery costs and thin margins: Food and grocery delivery involves heavy logistics costs, making profitability hard. mint
- Intense competition: With major players like Swiggy and Zomato deeply entrenched, gaining significant market share became difficult.
- Corporate strategy shift: Ola seems to be refocusing on its core ride-hailing business and shedding non-core verticals to optimize resources.
What Could Happen Next
- Ola may pivot its food ambitions: perhaps maintain only cloud-kitchen / private-label brands rather than full marketplace delivery.
- The company might permanently exit food delivery if it fails to see a viable path forward — especially given past failures.
- Competitors may benefit from reduced competition, but there also may be openings for regional players or niche services.
- Customers relying on Ola for food may have to switch back to dominant platforms (Swiggy, Zomato) or explore alternatives.
Conclusion
The “Ola food delivery halt” marks another chapter in the company’s ongoing struggle to find a sustainable foothold in India’s competitive food-delivery market. Despite multiple attempts — from Ola Cafe to Foodpanda acquisition — systemic challenges such as thin margins, intense competition, and high logistics costs have forced Ola to pause once again. Whether this is a temporary measure or a permanent exit remains uncertain.
