Ride-hailing giant Ola has introduced “Ola Parcel,” an all-electric parcel delivery service in Bengaluru, marking its foray into the logistics segment. Ola will employ Ola Electric scooters for intra-city deliveries, taking a significant step towards building a two-wheeler logistics ecosystem in India.

Bhavish Aggarwal, CEO of Ola, outlined the pricing structure for Ola Parcel, stating that the service would charge Rs. 25 for a 5km delivery, Rs. 50 for 10km, Rs. 75 for 15km, and Rs. 100 for 20km. Ola has ambitious plans to expand this service nationwide in the coming months.

Ola Parcel will face stiff competition from established players in the intra-city parcel delivery market, including Uber, Porter, Swiggy Genie, and Dunzo. Uber launched its parcel delivery service, “Uber Connect,” last year, initially in four cities but later expanding it across India. Various companies are also transitioning to electric vehicles (EVs) for their delivery operations, with Porter already operating a fleet of approximately 3,500 EVs in several cities.

Ola’s move into the parcel delivery sector is part of the company’s broader strategy to diversify its business offerings. In September, Ola joined the Centre-backed Open Network for Digital Commerce (ONDC) to provide food delivery services. Additionally, Ola Cabs recently announced the relaunch of its bike taxi services in Bengaluru, exclusively using Ola Electric’s S1 scooters.

The logistics industry’s shift towards electric vehicles aligns with the broader trend of reducing carbon emissions and adhering to stricter environmental regulations. Porter, for instance, has deployed around 3,500 EVs in cities like Delhi and Bengaluru, with a presence in other major metros. Uber, on the other hand, has partnered with Zypp Electric to incorporate 10,000 EV two-wheelers into its ride-hailing services in Delhi and collaborated with SIDBI to facilitate Rs. 1,000 crore in EV financing.