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    Home / News / Business News / Ola launches all-electric parcel delivery service to take on Dunzo
    Next Article
    Ola launches all-electric parcel delivery service to take on Dunzo
    The service has commenced in Bengaluru

    Ola launches all-electric parcel delivery service to take on Dunzo

    By Dwaipayan Roy
    Oct 06, 2023
    07:48 pm

    What's the story

    Ride-hailing company Ola has launched an all-electric parcel delivery service called "Ola Parcel" in Bengaluru.

    This service will use Ola Electric scooters for intra-city deliveries, kickstarting a two-wheeler logistics ecosystem in India.

    Ola CEO Bhavish Aggarwal stated that the service will charge Rs. 25 for 5km, Rs. 50 for 10km, Rs. 75 for 15km, and Rs. 100 for 20km. Ola aims to expand this service nationwide in the coming months.

    Details

    Competing with existing players in the parcel delivery space

    Ola Parcel will compete with established players in the intra-city parcel delivery market, such as Uber, Porter, Swiggy Genie, and Dunzo.

    Last year, Uber launched its own parcel delivery service called "Uber Connect," which initially started in four cities but has since expanded across India.

    Other companies are also shifting to electric vehicles (EVs) for their delivery services, with Porter boasting a fleet of around 3,500 EVs in various cities.

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    What Next?

    Ola's expansion into new business segments

    The introduction of Ola Parcel is part of the company's ongoing expansion into new business areas.

    In September, Ola joined the Centre-backed Open Network for Digital Commerce (ONDC) to offer food delivery services.

    Ola Cabs also recently announced the relaunch of its bike taxi services in Bengaluru, exclusively using Ola Electric's S1 scooters.

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    Insights

    Transitioning to electric vehicles in the logistics sector

    The move toward electric vehicles in the logistics sector is gaining traction as companies aim to reduce their carbon footprint and adhere to stricter environmental regulations.

    Porter has already added around 3,500 EVs across cities like Delhi and Bengaluru, with a presence in other large metros as well.

    Uber has also partnered with Zypp Electric to include 10,000 EV two-wheelers in its ride-hailing services in Delhi and teamed up with SIDBI to unlock Rs. 1,000 crore in EV financing.

    Done!
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