Ride-hailing company Ola has forayed into the logistics space as it has started its parcel pick-up-and-drop service called Ola Parcel in Bengaluru. The service is powered by Ola’s fleet of electric two-wheelers, announced founder and chief executive Bhavish Aggarwal on X (formerly Twitter).
It has launched at a starting price of ₹25 for five kilometres in the parcel pick-up-and-drop service segment.
“Launching Ola Parcel today in Bengaluru! Start of an all-electric 2W logistics ecosystem for India! ₹25 for 5km, ₹50 for 10km, ₹75 for 15 km, ₹100 for 20km! You can use tonight onwards. Expanding across India very soon, Aggarwal posted on X.
Ola is the latest entrant in the parcel pick-up-and-drop service segment, where it will compete with ride-hailing firms Rapido and Uber, as well as hyperlocal e-commerce platforms Swiggy Genie and Reliance Retail-backed Dunzo.
Ola’s Parcel service has entered with very competitive rates. Swiggy Genie charges ₹60 up to 2 km and then ₹15/km up to 7 km. Beyond that, the rate rises to ₹25/km. On the other hand, Rapido charges ₹40 for the 2 km, then ₹13/km up to 7 km. The rate is ₹12/km beyond 7 km.
This service is being launched after Ola, on September 16, restarted its bike-taxi service in Bengaluru using its electric S1 scooters.
Meanwhile, Ola Electric recently closed a $140-million funding round led by Singapore’s sovereign fund Temasek, valuing the electric scooter manufacturer at $5.4 billion. Also backed by Softbank, Ola Electric plans to raise between $600 million and $1 billion in its initial public offering (IPO), slated for next year.