Ola's Food Delivery Woes Hit with Temporary Pause as Bhavish Aggarwal Orders Strategic Reset

Bhavish Aggarwal–led Ola Consumer has paused operations of Ola Foods, with the service disappearing from the ride-hailing app in recent days, Moneycontrol reported.

The cloud-kitchen business, which also operated through the Open Network for Digital Commerce (ONDC), is currently not accepting orders, indicating a wider shutdown across both channels.

“The operations are temporarily paused. The company is re-evaluating plans and working on the business plan,” the report quoted a source saying. It remains unclear whether Ola intends to restart Ola Foods or exit the category altogether.

The development comes as the SoftBank-backed firm reassesses non-core verticals amid an ongoing portfolio restructuring. Industry executives told Moneycontrol that the company has “paused operations” and put most activities on hold.

Over the past two years, Ola has wound down or scaled back several experiments outside its core mobility business, including used vehicles and quick commerce pilots under the Ola Cars and Ola Dash brands.

Ola’s Food Delivery Efforts

Ola has made multiple attempts to enter the food delivery market since 2015. In 2019, it launched Ola Foods as a cloud-kitchen venture featuring proprietary brands distributed through Ola’s logistics network. The most recent push began in September 2023 when the company joined the government-backed ONDC to offer food delivery services directly through its flagship ride-hailing app. By December 2024, Ola had expanded the offering to 100 cities.

The company also scaled distribution on ONDC over the past year to reduce dependence on its app, but order volumes on the network remained limited, sources familiar with operations told Moneycontrol.

India’s food delivery and cloud-kitchen sector continues to be dominated by Swiggy, Zomato and a growing slate of ONDC sellers, making it difficult for smaller or less focused entrants to sustain operations. The pause comes as competitive pressure intensifies, including the entry of rival ride-hailing platform Rapido, which launched its standalone food delivery app, Ownly, in August. The service is presently available in limited regions.