Ola owned Foodpanda looking to step away to reduce its cash burn
As per report, the company makes its operations a lot more efficient and focuses on its own private labels and fall back on its cloud kitchen. Reportedly Ola must have also found that the orders keep flowing as long as there is an offer going and the moment the offer is withdrawn the numbers fall off. And this phenomenon is not new to the food order delivery business alone.
Furthermore many popular FMCG brands struggle with the dilemma whether to continue with the offers they use to promote their products among the customers. Meanwhile some of these brands are forced to keep some offer or the other perennially to ensure the sales volumes do not drop. Accordingly Foodpanda will now adopt a strategy where its order numbers might keep coming down.
Moreover Ola will now focus on scaling its payments, lending and core transportation portfolio. Ola has identified that its key focus areas will remain the mobility business where it sees larger opportunities for SBUs like scooters and electric vehicles. Hence besides these, Foodpanda has also been leveraging Ola’s reach to reach out to more audience and so with these objectives, the company has shifted some of its executives who had earlier been seconded to Foodpanda, back to the main business operations.