Online food delivery is a tricky space for Indian startups, what with intense competition, wafer-thin margins and a funding drought that shows no signs of a let-up. So it was a bit of a surprise when San Francisco-based Uber, the world’s biggest startup by valuation, announced last week that it will soon launch its global on-demand food delivery app, UberEATS, in India. To roll out the service, it is currently inviting restaurants and delivery partners.
“Ola tried to do so many things at the same time. At some stage, there was investor pressure on them to pick and choose their battle. So Ola walking out of this business does not mean that the market doesn’t exist,” says Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research.