Ola Mobility is eyeing a diversification of its e-commerce capabilities as a result of ONDC collaboration. The company’s goal is to allow its user base to buy groceries, clothes, and fashion through its app within a month. Ola has reportedly enlisted Magicpin as its technological service provider.
Bhavish Aggarwal led the ridesharing unicorn. Ola Mobility plans to diversify its ecommerce operations as a result of its engagement with the Open Network for Digital Commerce (ONDC).
According to ET, the company is focusing on providing its users with the option of purchasing food, fashion, and clothes through its app.
According to the article, an ONDC interface will provide the Ola app access to hundreds of groceries as well as fashion and retail brands in cities already on the network. The company has also hired Magicpin as a technology service provider.
It is worth noting that Ola initially collaborated with the network when it developed a food delivery platform in September 2023. While the company’s foodtech adventure was first exclusive to its employees, it is now open to the public. ONDC announced in January that Ola, a buyer app in the food market, is already operating on the network.
A few months later, the company expanded its relationship with ONDC by partnering with the network to provide last-mile logistics services across all categories, including food delivery, grocery shopping, and medications.
Ola’s new grocery and fashion venture is anticipated to improve its ONDC logistical capabilities. Ola’s latest venture will pit it against Pai Platforms (Paytm Ecommerce), Swiggy’s Instamart, and Blinkit, among others. Startups operating in the fashion e-commerce market include 82°E, Beyoung, and Snitch, among others.
Uber, Ola’s key competitor in the ride-hailing market, has also lately adopted the ONDC strategy. In February, the company signed an agreement with the network to investigate integration to broaden its portfolio of mobility products.
The startup’s intentions for horizontal development come as it closes down elements of its ride-hailing operation. Earlier this month, the company announced that it would stop its ride-hailing operations in the United Kingdom, New Zealand, and Australia. Ola has stated that it intends to focus on India, where there is a huge scope for growth.
The new service would reduce the company’s grocery/apparel-ordering costs by eliminating the need to deploy a fleet of delivery executives or persuade merchants and fashion firms to sell through the Ola app. This could also help its logistics operations on ONDC, as Ola is also a logistics service provider.
