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Business News/ Companies / News/  Ola parent rebrands quick commerce biz as ‘Ola Dash’
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Ola parent rebrands quick commerce biz as ‘Ola Dash’

It also aims to set up 500 so-called dark stores, or warehouses that do not have retail storefronts, in the next six months across 20 Indian cities.

ANI Technologies Pvt. Ltd also aims to set up 500 dark stores, or warehouses without retail storefronts, in the next 12 months. mintPremium
ANI Technologies Pvt. Ltd also aims to set up 500 dark stores, or warehouses without retail storefronts, in the next 12 months. mint

MUMBAI,BENGALURU:ANI Technologies Pvt. Ltd, the parent of ride-hailing company Ola, has rebranded its quick commerce business as Ola Dash. It also aims to set up 500 so-called dark stores, or warehouses that do not have retail storefronts, in the next six months across 20 Indian cities. The moves come amid rising competition for quick commerce in the country.

The quick commerce service was launched in 2021 as Ola Store and is available in nine places, including Bengaluru, Mumbai, Delhi-NCR, Pune, Hyderabad, Chennai, Kolkata, Jaipur, and Lucknow. Ola has more than 200 dark stores and 2,500 stock keeping units (SKUs). The company aims to expand the business to more than 500,000 orders per day by the year-end. It has not disclosed the present numbers.

“Our quick commerce service is an essential part of our connection with customers as they rely on technology and online service to fulfil their daily needs. Over the next few months, we will expand our reach and presence to more cities and customers," said Anshul Khandelwal, chief marketing officer, Ola.

Ola made forays into the hyperlocal delivery space in June 2015 with the launch of Ola Store, but shut it down the following year. In October last year, Ola set aside 250 crore for the grocery business.

Ola’s brand rejig and expansion plans come at a time when the quick commerce space is heating up in India, with many new-age technology companies aggressively making forays in that space.

Last week, Swiggy, operated by Bundl Technologies Pvt. Ltd, raised $700 million from global investors with a focus on investing heavily in its quick commerce and delivery segments, Swiggy Instamart. Swiggy had then said that Instamart will achieve an annualized gross merchandise value (GMV) run rate of $1 billion in the next three quarters. In December last year, Swiggy said it will invest $700 million in Instamart.

Swiggy is not alone. Another company in the quick commerce segment, Zepto, operated by Kiranakart Technologies Pvt. Ltd, has been raising funds aggressively over the last 12 months. Zepto guarantees 10-minute delivery of groceries in cities where it has a presence. The company is valued at $570 million and has raised more than $160 million in 2021 alone.

Recently, logistics company Shadowfax said that quick commerce deliveries serviced by the platform grew 500% in January 2022 over the year- ago period.

The hyperlocal delivery segment, too, is picking up pace in the country. Grofers, which is backed by Tiger Global Management, in December rebranded itself as Blinkit with a view to expand its 10-minute delivery business to 100 cities. The company had then said it will diversify into non-grocery deliveries under the 10-minute umbrella.

In November, Zomato invested in hyperlocal delivery startup Magicpin, operated by Samast Technologies Pvt. Ltd.

Many traditional Indian and global conglomerates, too, are aggressively betting on the quick commerce business in India. Reliance Industries Ltd, India’s largest company in terms of market capitalisation, had invested $200 million in Google-backed hyperlocal delivery startup Dunzo, for a near 26% stake.

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Published: 28 Jan 2022, 11:22 PM IST
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