Ola Consumer suspends Ola Foods, pausing cloud-kitchen operations amid strategic reassessment

INDIA – Transportation firm Ola Consumer has halted its Ola Foods division, temporarily removing the food-ordering feature from its ride-hailing app and pausing orders via the government-led Open Network for Digital Commerce (ONDC).

The Bengaluru-based company, backed by SoftBank, is reviewing its food business strategy amid intensifying competition.

Operational Pause and Strategic Review

Ola Foods, launched in 2019 as a cloud-kitchen initiative with proprietary brands and logistics, expanded food delivery through ONDC in late 2023.

By December 2024, service reached 100 cities, growing ONDC use during 2025 despite modest transaction volumes.

The company has not confirmed if Ola Foods will resume or exit the food sector permanently, quietly suspending activities as part of a broader realignment focusing on core businesses.

Competitive Landscape

India’s food delivery market remains dominated by Swiggy and Zomato, alongside ONDC-linked sellers. Rival ride-hailing Rapido recently launched Ownly, a dedicated food app in August 2025, intensifying competition.

Industry insiders indicate Ola’s pause reflects ongoing evaluation rather than abrupt closure, cautioning about sector challenges and need for sustainable models.

Ola Consumer has continued to innovate and invest in multiple sectors beyond Ola Foods. Starting as a ride-hailing giant, Ola expanded aggressively into electric mobility, launching Ola Electric in 2023.

The company has invested heavily in developing electric two-wheelers, batteries, and charging infrastructure, aiming to revolutionize urban transport in India and reduce carbon emissions.

In 2025, Ola unveiled plans to build one of the largest gigafactories for electric vehicles in Tamil Nadu, significantly boosting local manufacturing and employment.

The company also focuses on integrating AI and machine learning to optimize ride and fleet management, improving user experience and operational efficiency through predictive analytics.

Ola’s autonomous vehicle initiative includes partnerships with technology firms for pilot programs in select cities, experimenting with self-driving technology to enhance future mobility options.

Additionally, Ola Money, its digital payments platform, has seen rapid adoption, facilitating seamless transaction experiences within the Ola ecosystem and beyond.

These strategic investments illustrate Ola’s commitment to diversified innovation and sustainable growth across transportation and digital services.

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