Food ordering platform Foodpanda India on Monday said it is planning to invest Rs 400 crore to boost its delivery network. The online food delivery portal which was acquired by cab aggregator Ola in December is also looking to hire 25,000 delivery riders in the next 12 to 15 months.
The food tech company said the new investment will help scale up technology to provide seamless experience to customers, partner restaurants and riders across all the metros and other key cities in the country. Foodpanda India CEO Pranay Jivrajka said: "Creating a strong delivery ecosystem backed by technology is one of the most fundamental needs of the Indian food tech industry."
Owing to increasing urbanisation, growth in the internet population, higher disposable incomes and rising preference for online food ordering, the company is gearing itself to significantly grow the percentage of orders that are fulfilled by the depth and expanse of its delivery services, Foodpanda said.
The food tech firm is present in 150 cities and has 15,000 restaurants on its platform. Ride hailing app Ola had committed infusion of funds to the tune of Rs 1,300 crore from parent ANI Technologies Pvt Ltd into Foodpanda India.
Ola has a presence in 110 cities with nearly a million cabs or drivers. Ola's acquisition of the food delivery platform is expected to lead to better synchronization and product experience for both companies. Neither Zomato, or Swiggy, Foodpanda's primary rivals in India, have the advantage of Ola's scale.
Ola had bought Foodpanda's India business from Berlin-based Delivery Hero Holding GmbH, one of Europe's biggest startups and a global online food ordering and delivery marketplace, in exchange for its stock.