The food delivery ace FoodPanda, once acquired by the ANI Technologies Pvt. Ltd. owned Ola, as per the reports, has laid off most of its employees and cancelled the contracts of around 1,500 of its food delivery executives. The development came in effect after the company announced inclusion of its physical outlets for private lable brands and list them on rival delivery platforms of Zomato, Swiggy and Dunzo food delivery apps.
“As part of our ongoing business re-purposing initiatives, we are focused on building our own food brand and curated food offerings through our fast expanding network of kitches,” said an Ola spokesperson.
FoodPanda has been operating around 50 cloud kitchens in major cities of India. It has been reported that FoodPanda is planning to shift its focus from market place affair to a cloud kitchen business.
In the latest development, FoodPanda denied the previous media reports by Livemint over shutting down its delivering services, and laying off 40 employees and ending the contracts of majority of its 1,500 food delivery executives.
The company also owns several private lable brands including The Great Khichdi Experiment, Lovemade, and FLRT.
A month ago, as reported, FoodPanda removed majority of restaurants from its app and its services were mostly unavailable across major cities.
In December 2017, Ola had acquired Foodpanda from Berlin-based Delivery Hero for nearly Rs 200 crore. Also, Ola made an investment worth Rs 1,300 crore in the food delivery company at the time.
Hence, it can be assumed that the once food delivery mammoth with the potential to give a head-on competition to other delivery aces such as Zomato, Swiggy is now grounding its operations from market place and expanding its reach to cloud kitchen business.