Ola Consumer Rolls Out 10-Minute Grocery Delivery, Starts with Bengaluru

Manvendra HadaDecember 30, 2024

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Three points you will get to know in this article:

As part of the new offering, Ola delivers shopping and daily basics to consumers in select regions of Bengaluru in less than 10 minutes.
This comes only two weeks after Ola Consumer initiated a pilot of 10-minute food delivery services in Bengaluru through ONDC.
Ola Consumer became a public limited company in November in preparation for its first public offering.

Ola Jumps the Bandwagon, Plans A Quick Commerce Vertical

In the midst of the ongoing rapid commerce frenzy, Bhavish Aggarwal-led Ola Consumer has launched a test program for a 10-minute grocery delivery service in certain Bengaluru pin codes. This comes only days after the company established a pilot program for speedy meal deliveries.

While Ola Consumer has long delivered groceries to clients through the government-backed ONDC, the pilot marks the company’s official entry into the quick commerce market.

Ola Consumer has become the latest entrance into India’s fast expanding quick commerce market, which is currently controlled by Zomato-owned Blinkit, Swiggy Instamart, and Zepto. In fiscal year 2023-2024 (FY24), the trio recorded total revenue of more than $900 million.

What Does Ola Consumer (Previously Ola Cabs) Offers?

Ola’s latest offering includes delivering grocery and daily basics such as fruits and vegetables, dairy items, meat and eggs, beverages, instant food, and munchies, as well as home care and personal care products, to consumers in select sections of Bengaluru in under 10 minutes.

The IPO-bound startup currently does not charge a delivery fee for its rapid commerce services.

It is worth noting that Ola Cabs rebranded itself as Ola Consumer earlier this year. At the time, Aggarwal stated that the company would expand its cooperation with ONDC and provide a slew of services to make ecommerce more accessible and inexpensive.

Aside from ride-hailing services, Ola Consumer now offers credit disbursement through Ola Credit, UPI payments through Ola Pay, and an AI shopping copilot.

Ola Consumer IPO, Planning, Aim for Ola Consumer’s IPO

Ola Consumer became a public limited company in November, preparing for its initial public offering (IPO).

Ola’s debut is expected to boost competition in the rapid commerce market. While ecommerce behemoth Amazon recently announced its entry into the rapid commerce arena, Flipkart introduced ‘Flipkart Minutes’ earlier this year.

Indian Quick Commerce Market Valuation, Players

Established players such as Blinkit, Instamart, and Zepto are expanding their offers beyond groceries to include apparel, toys, jewellery, and skin care products.

According to brokerage firm Motilal Oswal, Blinkit led the rapid commerce category with a 46% market share in Q1 FY25, followed by Zepto (29%), and Swiggy Instamart (25%).

In response to rising demand for speedy delivery of daily necessities, several new-age internet businesses, like Nykaa, Myntra, and Pilgrim, have entered on the swift commerce bandwagon in recent months.

As per a survey by financial services provider Chryseum, India’s quick commerce business is now valued at $3.3 billion and is predicted to grow to $10 billion by 2029.