techcrunch.com – Ola, the Uber rival in India, is entering the food delivery space after it announced a deal to acquire Foodpanda’s India business from its parent company DeliveryHero.
The deal will see Ola scoop up the Foodpanda India business with DeliveryHero taking an undisclosed amount of Ola stock in exchange.
Undisclosed all-stock deals are usually indicative of a willingness to sell, and we have heard that DeliveryHero has been shopping its Indian business around. Further: Saurabh Kochhar, who headed Foodpanda India, has also “decided to move on to pursue other opportunities,” according to today’s announcement. Ola founding partner will interim CEO until a permanent replacement is found.
Nonetheless, Ola — which is now at around two million rides per day — is an ideal buyer.
The company is in the mood for expansion after it closed a $1.1 billion funding round led by Tencent and SoftBank in October, and seeking ways to differentiate itself from Uber’s Indian business.
To help kickstart that, Ola is pumping $200 million into Foodpanda India, which claims 12,000 restaurant partners in over 100 cities. That investment is more capital than Foodpanda’s (many) competitors in India have raised to date, as Ola went to great pains to point out. But still there’s a great challenge ahead.
Ahhh shit a little technology competition on who can make us more lazier in the most convenient fashion never hurt anyone.