Cab aggregator Ola acquiring Foodpanda's India business in exchange for stock is only a hint of more consolidation to come. As investors looked for exits and poorly run firms were forced out, the domestic food tech sector saw diminished interest because the unit economics of delivery didn't add up.
The Ola-Foodpanda combine will be a threat to both Zomato and Swiggy as Ola is present in 110 cities with over a million cabs and drivers, giving it the edge in inventory optimisation and product experience. Foodpanda, meanwhile, is present in 100 cities and has 15,000 restaurants on its platform. With Ola expected to pump in $200 million, Foodpandas app experience and back-end technology will get much better. -