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Ola Grocery Delivery – Will It Conquer The Market This Time?

3147 Views | 1 min | Published On: November 12, 2021 Last Updated: May 29, 2024

Ola – the famous taxi-hailing service provider has now decided to step its foot in grocery delivery (Ola Grocery Delivery). This grocery delivery service is a mixture of dark stores and hyperlocal pickup and drop business models. 

Ola would most likely deploy 125k Foodpanda delivery riders to fulfil grocery orders. The cab company is growing its operations to compete with its rival Uber, which is planning to start some large grocery delivery ventures in India by next year.

Many business owners are planning to go for taxi app development services as the industry is booming right now. But Ola and Uber have taken their businesses on a different level by providing services other than taxi booking.

Also read, How Can You Build A Taxi Booking App – Uber Business Model Explained.

Before diving straight into the functionalities of Ola grocery delivery services, you must know what exactly are grocery dark stores?

What Are Dark Stores?

A Dark Store, also known as a micro-fulfilment centre, is a facility dedicated to expediting the completion of online orders. It’s a modest, neighbourhood grocery, but it’s deserted. Like any other traditional grocery store, a Dark Store contains aisles with shelving and racks for groceries.

Whenever a customer orders a grocery online, the dark store facilitates pickup and packing service immediately. The dark store employees either deliver the groceries at the customer’s address or any location specified by the customer.

But How Exactly Are Dark Stores Beneficial?

Dark stores for groceries are beneficial in many ways including apart from being conveniently positioned for quick delivery operations in high-order-density areas. For various grocery retailers, dark stores prove to be beneficial in the following ways:

  • Improve the effectiveness of their online picking operations and grow their online business faster.
  • Picking online orders in a non-trafficked area will help you become more efficient.
  • Improve your inventory management.
  • Multiple replenishments can be completed in a single day, and that can reduce planning cycles to hours.
  • Service new consumers who are located distant from an existing store and do not have the financial means to create one.

Is The Market Ready For OLA Grocery Delivery Services?

It’s worth noting that this isn’t Ola’s first attempt to break into the grocery delivery market for Ola grocery delivery services. It had previously attempted to break into the grocery industry, but the firm was unable to thrive, and the corporation was forced to close down its grocery division, known as ‘Ola Store.’

Ola grocery delivery statistics for US
Ola grocery delivery statistics

Ola has been hard at work developing a grocery-specific platform for Ola grocery delivery services over the past five months, with plans to debut it in early 2019. In addition, by utilising Foodpanda‘s delivery network, the company has discovered an easy way to expand its grocery network. 

Ola bought Foodpanda’s Indian business from its Germany-based parent company Delivery Hero for $31.7 million (around 202 crores) in January, and it’s now proving to be a profitable investment. 

Grocery shopping applications are becoming increasingly common as individuals become more technologically adept. Online customers are on the rise, and we’ve seen significant growth in grocery purchasing through on-demand grocery delivery mobile applications and delivery platforms in contrast to previous years.

Also, read – How Can You Create An On Demand Grocery Delivery App For Your Business?

People like the concept of ordering household things at any time and having them delivered at their desired time. And it all happens without the need to go to a physical store and wait in line while being billed. This is most likely the primary explanation for the dramatic surge in internet shopping. As a result, businesses and IT organizations all over the world are interested in grocery delivery app development.


Who Is Ruling The Grocery Delivery Market Other Than Ola Grocery Delivery?

Furthermore, amid the COVID-19 outbreak, grocery delivery is ideal for those who do not want to leave their homes. You should have a basic knowledge of the market leaders in this segment and how they operate before developing this app. Some of the famous grocery delivery market leaders are:

ola grocery delivery market leaders


Walmart Grocery is one of the world’s largest grocery delivery services. It has a presence in over 1,600 cities around the world. It began operations in a few cities in 2015, then quickly expanded its reach.


Instacart’s market share has increased dramatically. It has increased by 179% since August 2017 and by 75% since January 2018. Grocery delivery (and pickup) is now available to 80% of American households, up from 35% in 2017. When it comes to grocery delivery market share, Shipt, Amazon, and FreshDirect all trail Instacart.

Amazon Prime Now

Amazon is one of Walmart’s most formidable rivals. Both corporations are global leaders in their fields, and they compete fiercely. Amazon’s food and beverage sales in the United States were $6.13 billion in 2019, accounting for 23.7% of overall food and beverage e-commerce sales in the United States.


Peapod is a Chicago-based online grocery delivery smartphone app that has locations around the United States. Peapod is the largest online grocery delivery store in the United States, with operations in 24 U.S. urban regions as of 2015.

How Much Will It Cost To Start An Online Service Like Ola Grocery Delivery?

The cost of developing an app like Ola grocery delivery services depends on a lot of factors like technologies used, the mobile app development company hired advanced features and functionalities included and many other things. Some of these factors are described below:

factors that affect the development of app like ola grocery delivery

The Mobile App Development Company You Partner With

Various mobile app development companies differ in pricing according to their team and experience. Apptunix has a team of highly skilled professionals with over 15+ years of experience in every aspect of grocery delivery app development, like Gojek clone super app delivery services. Click here to hire us now!

Location Of The Mobile App Development Company

The location of the development company has an impact on the expenses as well. For example, development costs in Southeast Asia can range from $20 to $30 per hour, whereas in North America, they can reach approximately 100$ per hour. It’s better to consult us as to the affordable prices rather than spending so much. Fun fact, we offer a free consultation for you to know about us before partnering with us.

Timeline & Team Size

If you require an app within a very short time frame, the company’s fees will undoubtedly rise. A huge team of developers will also be more expensive.

Wrap Up

Despite the presence of many established firms such as BigBasket, which has a market share of about 35% in the online grocery sector, according to a Kalagato report from March 2017, followed by Grofers and Amazon with 31.5% and 31.2% respectively, Ola has a great chance to make a name for itself in this sector with proper and concrete planning.

With such huge corporations moving into the grocery delivery market, don’t hold your business back! Connect with us and we will give a smart kick-start to your grocery delivery business and make it shine like Ola grocery delivery.


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