In a significant move within India's competitive food delivery landscape, mobility giant Ola has decided to pause its food delivery and cloud kitchen business. The company has removed the 'Foods' section from its primary application, effectively halting the service for its users.
Service Halt and App Changes
The change is already visible to customers using older versions of the Ola app. The section dedicated to ordering food, which housed Ola's cloud kitchen offerings, is no longer functional. As of now, the platform is not accepting any new food orders. This development indicates a strategic pullback from the food delivery vertical, which Ola had entered to diversify beyond its core ride-hailing services.
It is noteworthy that Ola's foray into food was not limited to its own app. The service was also integrated and operational through the government-backed Open Network for Digital Commerce (ONDC). The current pause affects this channel as well, marking a broad suspension of its food tech ambitions.
Timing and Strategic Context
The news was reported on 04 December 2025, highlighting a key shift in the company's portfolio strategy. The food delivery sector in India is dominated by heavyweights like Zomato and Swiggy, making it a capital-intensive market with thin margins. Ola's decision to pause operations suggests a possible reevaluation of its investments in this challenging segment.
This step allows Ola to consolidate its resources and focus on its primary businesses, including ride-hailing, electric vehicle manufacturing, and financial services. The removal of the 'Foods' tab streamlines the user app experience, centering it on mobility and related offerings.
Implications for the Market and Users
The exit, even if temporary, reduces competitive pressure in the cloud kitchen and delivery space. For consumers, it means one fewer option for food delivery, particularly for those who used Ola's integrated platform for both cab rides and meals. For the broader Indian food tech ecosystem, it underscores the difficulties of sustaining multiple large-scale players in a market still striving for profitability.
The involvement with ONDC was seen as a forward-looking move to leverage an open network. The pause raises questions about the immediate growth trajectory of food delivery on the ONDC network, though the platform itself continues to onboard other sellers and partners.
In conclusion, Ola's strategic pause on food delivery is a notable recalibration. It reflects the dynamic and often turbulent nature of India's tech-driven consumer markets, where companies must continually adapt to focus on their core strengths and sustainable growth avenues.
