Can Ola Disrupt the Zomato–Swiggy Duopoly?
The food delivery market in India is more competitive than ever, with Ola, supported by the Open Network For Digital Commerce (ONDC) platform, making a bold move.
ONDC, a government-backed initiative, aims to level the playing field by challenging the dominance of major players. Ola is taking advantage of this by launching a new food delivery service, offering significant discounts and emphasizing operational efficiency.
Ola’s delivery prices are 70-80% lower than those of Swiggy, Zomato, and other ONDC-affiliated apps like Paytm or magicpin.
Ola is focusing on price to shake up the food delivery scene in Bengaluru.
However, ONDC-backed food delivery services often lack the operational expertise and resources needed for consistent delivery.
Ola has tried and failed three times to establish a successful food delivery service through its app.
While Ola’s aggressive pricing is drawing in users, it’s uncertain how long such deep discounts can be maintained.
With Zomato and Swiggy having more financial resources and established infrastructures, they remain formidable competitors.
The competition is now about who can offer the best user experience, pricing, and operational efficiency. As ONDC grows, more competitors are expected to join the market.
The success of these new entrants will depend on their ability to balance growth, profitability, and customer satisfaction.
For consumers, this increased competition could mean better services and lower prices. However, the long-term effects on the industry and the viability of these new business models are still to be determined.
