Ola Enters the 10-Minute Food Delivery Race: A Glimpse into the Rapidly Growing Segment

The food delivery market in India has witnessed a dramatic shift with the advent of rapid food delivery services. What was once a novelty is now becoming the norm, with established players and new entrants vying for dominance. Ola, a major player in the mobility space, has reintroduced its brand “Ola Dash” to provide 10-minute food delivery in Bengaluru. This move places Ola alongside major competitors like Swiggy, Zomato, and Zepto in this fiercely contested market.

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Ola Dash: A Fresh Attempt

Ola Dash, launched in Bengaluru, offers 10-minute food delivery from select restaurants such as Eatfit, Freshmenu, BowlSoul, and GreenCraving. The service comes with attractive discounts and free delivery charges to entice early adopters. Interestingly, the same brand name was previously used for Ola’s quick commerce venture, which the company later shelved to focus on its core mobility business.

This new initiative is part of Ola’s broader food delivery strategy, which began in June this year via the Open Network for Digital Commerce (ONDC). While the company has yet to release an official announcement about Ola Dash, its entry into this segment signals a renewed focus on diversification.

Competitors in the Rapid Food Delivery Space

The 10-minute food delivery segment is bustling with activity, with both established players and new entrants intensifying the competition. Here’s a look at the key players:

• Swiggy Bolt: Launched in October, Swiggy’s Bolt already contributes 5% to the company’s revenue. Operating within a 2 km radius, Bolt boasts a menu of over 10 lakh items, underscoring its ambitious growth strategy.
• Zomato Bistro: Zomato, a long-standing competitor in the food delivery market, has entered the 10-minute delivery segment under the Bistro brand. Like Zepto, Zomato operates its rapid delivery service through a separate app.
• Zepto Cafe: A rising star in this space, Zepto Cafe operates in 15% of Zepto’s 600 dark stores, processing over 30,000 orders daily. With an annualised revenue run rate of ₹160 crore, Zepto Cafe aims to expand its operations to 600 stores and achieve ₹1,000 crore in revenue by next year.
• MagicNow by Magicpin: Another recent entrant, MagicNow, launched its rapid delivery service in major cities including Bengaluru, Mumbai, and Delhi-NCR. It delivers within a 1.5-2 km radius, further heating up the competition.
• Swish: Backed by Accel Partners, Swish is a startup that adds to the growing list of players in this segment.

The Growth Potential of Rapid Food Delivery

The rapid food delivery market offers immense growth potential. As noted in Swiggy’s quarterly results commentary, the demand for quick delivery services is growing, with significant contributions to revenue streams. Factors such as evolving consumer preferences, urbanisation, and the convenience of app-based services are driving the growth of this segment.

Additionally, the operational models vary across competitors. While Zomato and Zepto use standalone apps for their 10-minute delivery services, Swiggy and Ola have integrated these features into their main apps, offering a more seamless user experience.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.