It is seeking to fend off Uber Eats in the country.
According to Nikkei Asian Review, Ola will invest $200 million in Foodpanda as part of the deal.
Both Ola and Uber are locked in a high-stakes battle for leadership in India's fast-growing cab-hailing market. In their quest to grab market share, both the companies have been diversifying into a number of new businesses including e-wallets, car-pooling, and two-wheeler rides.
This is Ola's second attempt to enter the food delivery market in India.
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