Ride-hailing giant Ola is reportedly gearing up to launch grocery delivery services through the government-backed Open Network for Digital Commerce (ONDC).

The company, helmed by Bhavish Aggarwal, has also made significant strides in the food delivery sector, becoming the second-largest buyer-side app on the platform and accounting for nearly a third of its demand in key markets.

What Happened: Ola is set to roll out grocery delivery services via the ONDC in the coming days, according to Moneycontrol. The company has also been making waves in the food delivery sector, clocking 15,000 to 20,000 orders daily and capturing nearly 30% of the market in areas like Delhi-NCR and Bengaluru.

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This isn’t Ola’s first attempt at grocery delivery: The company launched an online grocery store in Bengaluru in 2015 but shut it down after nine months. Ola re-entered the online grocery delivery market with Ola Dash in 2021 but halted operations within a year. Last year, Ola joined ONDC to provide food delivery services.

Why It Matters: Ola’s move to launch grocery delivery services through ONDC is a strategic step to expand its footprint in the e-commerce sector. The company’s previous attempts at grocery delivery were not successful, but its recent performance in the food delivery sector indicates potential for success in the grocery segment.

The company’s decision to leverage its logistics expertise to offer electric vehicle-based services to smaller sellers on the ONDC network could also give it an edge in the competitive e-commerce market. The expected growth of ONDC transactions could also provide a significant boost to Ola’s new venture.

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