Store network

Ola to set up India’s largest network of dark stores for its quick commerce business

Ola, India’s largest mobility platform, has announced plans to expand its fast trading service – Ola Dash. Over the next six months, Ola Dash aims to expand its dark store network to 500 dark stores spread across 20 cities, making it the largest dark store network in India. The term dark store refers to a retail outlet or distribution center that caters exclusively to online purchases.

The move puts Bhavish Aggarwal-led Ola in competition with players including Reliance-backed Dunzo Amazon, Flipkart, Swiggy, Walmart-owned Zomato, Tata-backed Bigbasket and fast grocery delivery platform Zepto. .

Ola Dash currently serves 9 cities (Bengaluru, Mumbai, Delhi-NCR, Pune, Hyderabad, Chennai, Kolkata, Jaipur and Lucknow) via its “Store to Door” service within 10 minutes, spread across 200 dark stores, offering an assortment of over of 2500 SKUs (Stock Keeping Units). Ola aims to grow the business, increasing order sizes to more than 500,000 a day by the end of the year.

“Ola has been a leader in on-demand mobility for over a decade. Our advanced location-based technology, combined with a very low customer acquisition cost, gives us a unique advantage to bring the benefits of mobility to everyone,” said Anshul Khandelwal, Chief Marketing Officer of Ola. “Our Quick Trade service is a critical part of connecting with customers as they rely on technology and online service to meet their daily needs. Over the next few months, we will expand our reach and presence to more cities and customers. »

The range of products available on Ola Dash includes fresh produce, snacks and beverages, instant foods, household cleaning products, fruits and vegetables, kitchen essentials, and more.

Available on the Ola app, Ola Dash is an extension of the New Mobility vision that now covers a broader set of customer needs. These range from multi-modal transport offerings to vehicle trading to creating unique dining experiences with Ola Foods and now fast trading with Ola Dash. Ola said it makes urban mobility available on demand to over 1 billion people across 3 continents.

According to an industry report by Redseer, the addressable fast commerce market is expected to surpass $75 billion by 2025, creating a multi-billion dollar opportunity for players tapping into this market.

This month, Dunzo, the Google-backed fast-commerce player, raised $240 million in its latest round of funding. The investment was led by Reliance Retail Ventures Limited, with participation from existing investors.

Fast trading platform Zepto, which was launched nearly 6 months ago by two teenage Stanford dropouts, recently raised $100 million in its Series C round at a valuation of $570 million.

This month, food delivery giant Swiggy raised $700 million in new funding led by Invesco, which sources said made the company a decacorn, nearly doubling its valuation to 10.7 billions of dollars. This fundraising will also allow Swiggy to accelerate growth on the core platform and make significant investments to expand Instamart, its fast-commerce grocery service which remains well positioned to continue to lead the emerging space and which is expected to reach an annualized gross market value (GMV) run rate of $1 billion over the next three quarters.

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