<article>Armed with a recent $1.1-billion funding, Uber&#8217;s local rival <a href="http://dealstreetasia.com/tag/ola" target="_blank" rel="noopener">Ola</a> has acquired the Indian operations of food delivery platform <a href="http://dealstreetasia.com/tag/foodpanda" target="_blank" rel="noopener">Foodpanda</a> from Germany-based <a href="http://dealstreetasia.com/tag/delivery-hero" target="_blank" rel="noopener">Delivery Hero Group.</a></article>

Armed with a recent $1.1-billion funding, Uber&#8217;s local rival <a href="http://dealstreetasia.com/tag/ola" target="_blank" rel="noopener">Ola</a> has acquired the Indian operations of food delivery platform <a href="http://dealstreetasia.com/tag/foodpanda" target="_blank" rel="noopener">Foodpanda</a> from Germany-based <a href="http://dealstreetasia.com/tag/delivery-hero" target="_blank" rel="noopener">Delivery Hero Group.</a>
&#8220;This deal includes the transfer of Foodpanda’s India business to Ola in an acquisition deal in exchange for Ola stock,&#8221; according to an official statement.
Under the terms of the deal, Ola has also committed to investing $200 million into Foodpanda&#8217;s India business to take on rivals including Naspers-backed <a href="http://dealstreetasia.com/tag/swiggy" target="_blank" rel="noopener">Swiggy</a> and <a href="http://dealstreetasia.com/tag/zomato" target="_blank" rel="noopener">Zomato</a>.
&#8220;Our commitment to invest $200 million in Foodpanda India will help the business be focused on growth by creating value for customers and partners,&#8221; said Bhavish Aggarwal, Co-founder and CEO at Ola.
Saurabh Kochhar, who was the CEO of Foodpanda India until recently, has decided to move on to pursue other opportunities, while Pranay Jivrajka, Founding Partner at Ola, has been appointed as interim CEO.
The move also follows global ride-hailing giant and Ola&#8217;s fiercest rival, Uber, launching its food delivery service Uber Eats in India a few months ago.
Food delivery companies have faced their share of hurdles in the country, leading to a consolidation in this space including the recent acquisition of food delivery start-up Runnr by Zomato Media Pvt Ltd.
<a href="http://dealstreetasia.com/tag/runnr" target="_blank" rel="noopener">Runnr</a> was formed last year after a merger between hyperlocal delivery startup Roadrunnr and food-ordering startup <a href="http://dealstreetasia.com/tag/tinyowl" target="_blank" rel="noopener">TinyOwl</a>, both of whom were struggling financially.
Rocket Internet-backed Delivery Hero has also not seen a smooth ride in Asia. Last year, it shut operations in Indonesia after facing tough competition from the likes of Go-Jek’s food delivery service Go-Food. Foodpanda had also wound up operations in Vietnam in 2015, saying it plans to focus more heavily on the Middle East and Eastern Europe where it claimed to be profitable.
Last year, Russian billionaire Alisher Usmanov’s internet company, Mail.ru Group Ltd., agreed to buy Foodpanda’s online food delivery business in Russia for $100 million.
In India, too, Foodpanda has faced several hurdles including reports of fake postings and issues with logistics. It was forced to scale down operations in the country a couple of years ago and lay off a sizeable number of employees.
This is not the first time that Ola has tried its hands at the food delivery business. It had earlier launched a  pilot project, Ola Cafe, which it had to shut down last year after operating in a few cities.
&#8220;The partnership with Ola will allow us to further consolidate markets where it strategically makes sense to collaborate with leading local players,&#8221; said Niklas Östberg, Chief Executive Officer and Co-founder of Delivery Hero AG.
The acquisition comes close on the heels of a massive $1.1 billion funding raised by Ola from Japanese giant <a href="http://dealstreetasia.com/tag/softbank" target="_blank" rel="noopener">SoftBank </a>and Chinese Internet major <a href="http://dealstreetasia.com/tag/tencent" target="_blank" rel="noopener">Tencent</a>. SoftBank is reportedly looking to pump in more funds in Ola to increase its stake in the ride-hailing major.
Also Read:
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/zomato-acquires-delivery-startup-runnr-82335/" target="_blank" rel="noopener">India: Zomato acquires delivery startup Runnr</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/indias-ola-raises-1-1b-tencent-softbank-led-round-seeks-another-1b-83978/" target="_blank" rel="noopener">Ola readies $2b war chest to take on Uber in India; gets $1.1b from SoftBank, Tencent</a>

Armed with a recent $1.1-billion funding, Ola has acquired the Indian operations of food delivery platform Foodpanda from Germany-based Delivery Hero Group.

Uber rival Ola acquires Foodpanda India, commits $200m to food delivery biz

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Uber rival Ola acquires Foodpanda India, commits $200m to food delivery biz

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