How does Foodpanda make money?

Foodpanda is an online grocery and food delivery service owned by the European multinational company Delivery Hero.

Foodpanda was started in 2012 by Benjamin Bauer, Christian Mischler, Felix Plog, Kiren Tanna, Ralf Wenzel, Rico Wyder, Rohit Chadda, and Simon Schmincke.

Each of the founders was working for the German incubator Rocket Internet at the time, which was known to take proven business ideas and introduce them to underserved regions.

One such region was Southeast Asia, where it soon became apparent that the food delivery and grocery market was ripe for exploitation.

In April 2012, Foodpanda was launched in Malaysia, Singapore, Thailand, and India, among other countries. Within twelve months, the service had partnered with thousands of restaurants across 27 countries.

Around 2015, Foodpanda changed its restaurant aggregator business model in response to the emergence of smartphones in the Southeast Asian region.

Similar platforms such as DoorDash provided their couriers, allowing many restaurants to offer takeaway but not be required to deliver the food themselves.

By the end of 2016, Rocket Internet sold Foodpanda to Delivery Hero. As a result of the acquisition, Delivery Hero hoped to process over 20 million orders per month in 47 countries.

Further expansion saw the Foodpanda platform offered in Myanmar, Cambodia, Japan, and Laos in 2019 and 2020.

Today, Foodpanda partners with more than 115,000 restaurants around the world in over 400 cities.

Commission from RestaurantsFoodpanda partners with a vast network of restaurants and food establishments. When customers place orders through the Foodpanda platform, the company earns a commission from the restaurants on the total order value. This commission fee is typically a percentage of the order amount and serves as a significant source of revenue for Foodpanda. Restaurants benefit from Foodpanda’s extensive customer base and delivery infrastructure.
Delivery FeesFoodpanda charges delivery fees to customers for the convenience of having their food orders delivered to their doorstep. These fees vary depending on factors such as location, distance, and the restaurant’s pricing strategy. The delivery fees help offset the operational costs associated with the food delivery service and contribute to Foodpanda’s revenue.
Promotional PartnershipsFoodpanda often collaborates with restaurants and food brands on promotional initiatives. This can include offering discounts, promotions, and special deals to attract more customers to the platform. While these promotions may reduce the immediate revenue per order, they aim to increase order volume and customer loyalty over time.
Subscription ServicesIn some regions, Foodpanda offers subscription-based services to customers. Subscribers pay a monthly fee in exchange for benefits such as free delivery on eligible orders, exclusive discounts, and priority customer support. Subscription fees from these services provide a recurring source of income for Foodpanda.
Advertising and Sponsored ListingsFoodpanda may generate revenue through advertising and sponsored listings within its app and website. Restaurants and food brands may pay for featured placements or advertisements to gain visibility and attract more orders. These advertising fees contribute to Foodpanda’s income.
Challenges and CompetitionFoodpanda operates in a highly competitive market, facing competition from other food delivery platforms and ride-sharing companies that offer similar services. Staying competitive, optimizing delivery logistics, and ensuring a positive user experience are ongoing challenges.
Future Growth StrategiesFoodpanda’s future growth strategies may involve: – Market Expansion: Expanding its presence into new cities and regions. – Diversification of Services: Offering additional services like groceries and convenience items. – Enhanced Technology: Investing in app and website improvements for a smoother user experience. – Restaurant Partnerships: Attracting more restaurants to join the platform. – Customer Loyalty Programs: Launching programs to retain and reward frequent users.



Foodpanda revenue generation

Foodpanda has a typical revenue generation strategy for a food delivery business. The company utilizes the marketplace business model, matching riders and restaurants with customer demand.

A more detailed look at revenue generation is provided below.


Foodpanda makes most of its money through restaurant commissions. 

When a consumer places a food order, the company charges anywhere from 25 to 30% of the total order amount to restaurants.

Delivery fees

Consumers ordering food also pay delivery fees, with the exact fee depending on the country-specific market.

Fees are also contingent on how close the customer is to the restaurant, with larger distances commanding higher delivery fees. 

Foodpanda also charges delivery fees as part of its Pandago service. Other businesses can utilize its fleet of couriers to make same-day deliveries on food, groceries, documents, and other retail products. 

Because Foodpanda cannot collect a restaurant commission from these orders, the delivery fee is likely to be much higher to compensate.


Pandapro is the name given to a monthly subscription program for consumers, allowing them to receive exclusive deals and benefits. Such perks include free delivery and access to various discounts and vouchers.

The subscription fee charged depends on the consumer’s country of residence.

Grocery sales

Grocery sales are handled through a service called Pandamart, an on-demand platform selling over 3,500 daily essentials such as fresh produce, household items, beauty products, and medication.

Products are stored and distributed from Foodpanda-owned and operated warehouses. To make a profit, it can be assumed the company is marking up prices on certain items.

Key takeaways:

  • Foodpanda is an online grocery and food delivery service owned by the European multinational company Delivery Hero. The founders of the platform worked for Rocket Internet, a start-up incubator known for replicating successful business models in underserved markets.
  • Foodpanda adheres to a typical revenue generation strategy for a food delivery business. It charges restaurants a commission fee and consumers a delivery fee.
  • Foodpanda also offers a consumer subscription service, giving them access to various discounts and perks. The company also operates an on-demand grocery platform for household staples and other essential items.

Key Highlights

  • Founding and Expansion: Foodpanda was founded in 2012 by a group of entrepreneurs working for Rocket Internet. It started as an online food delivery service in Southeast Asia and quickly expanded to multiple countries including Malaysia, Singapore, Thailand, and India.
  • Business Model Evolution: In response to the rise of smartphones and changing market dynamics, Foodpanda transitioned from a restaurant aggregator model to a platform that also provided delivery services. This allowed restaurants to offer takeaway without needing to manage their own delivery logistics.
  • Acquisition by Delivery Hero: In 2016, Delivery Hero acquired Foodpanda from Rocket Internet. This acquisition aimed to enhance Delivery Hero’s global reach and processing capacity, with the goal of handling millions of orders monthly across numerous countries.
  • Global Reach: After the acquisition, Foodpanda continued to expand its services into new markets, including countries like Myanmar, Cambodia, Japan, and Laos. As of now, it partners with over 115,000 restaurants in more than 400 cities around the world.
  • Revenue Generation: Foodpanda’s revenue primarily comes from several sources, including restaurant commissions, delivery fees, subscriptions, and grocery sales.
  • Restaurant Commissions: Foodpanda charges restaurants a commission fee for each order placed through its platform. This fee typically ranges from 25 to 30% of the total order amount.
  • Delivery Fees: Customers ordering food are charged delivery fees, which vary depending on the specific market and distance between the restaurant and the customer. The company also offers its delivery fleet for same-day deliveries of various products.
  • Subscription Service: Foodpanda offers a subscription program called Pandapro, allowing customers to access exclusive deals, free delivery, and discounts for a monthly fee. The subscription cost varies based on the customer’s country.
  • Grocery Sales: Foodpanda operates Pandamart, an on-demand grocery platform that sells essential items such as fresh produce, household goods, beauty products, and medications. The products are stored and distributed from Foodpanda-owned warehouses.
  • Market Presence: Foodpanda’s platform has a dual role of connecting customers with restaurants and providing a convenient channel for groceries and other essential items. Its global presence and versatile offerings make it a prominent player in the food delivery and online grocery sectors.

Related Business Models

DoorDash Business Model

DoorDash is a platform business model that enables restaurants to set up at-no-cost delivery operations. At the same time, customers get their food at home, and dashers (delivery people) earn some extra money. DoorDash makes money by markup prices through delivery fees, memberships, and advertising for restaurants on the marketplace.

Glovo Business Model

Glovo is a Spanish on-demand courier service that purchases and delivers products ordered through a mobile app—founded in 2015 by Oscar Pierre and Sacha Michaud as a way to “uberize” local services. Glovo makes money via delivery fees, mini-supermarkets (fulfillment centers that Glovo operates in partnership with grocery store chains), and dark kitchens (enabling restaurants to increase their capacity).

GrubHub Business Model

Grubhub is an online and mobile platform for restaurant pick-up and delivery orders. In 2018 the company connected 95,000 takeout restaurants in over 1,700 U.S. cities and London. The Grubhub portfolio of brands like Seamless, LevelUp, Eat24, AllMenus, MenuPages, and Tapingo. The company makes money primarily by charging restaurants a pre-order commission, and it generates revenues when diners place an order on its platform. Also, it charges restaurants that use Grubhub delivery services when diners pay for them. 

Instacart Business Model

Instacart’s business model enables an easy setup for grocery stores, the comfort for customers to get their shopping delivered at home, and an additional income stream for personal shoppers. Instacart makes money by charging service fees via memberships and running performance advertising on its platform.

Lyft Business Model

Lyft is a transportation-as-a-service marketplace allowing riders to find a driver for a ride. Lyft has also expanded with a multimodal platform that gives more options like bike-sharing or electric scooters. Lyft primarily makes money by collecting fees from drivers who complete rides on the platform.

Uber Business Model

Uber is a two-sided marketplace, a platform business model that connects drivers and riders, with an interface that has elements of gamification that makes it easy for two sides to connect and transact. Uber makes money by collecting fees from the platform’s gross bookings.

Postmates Business Model

Postmates is a food delivery service built as a last-mile delivery service platform connecting locals with shops. Postmates makes money by collecting fees (commission, delivery, service, cart, and cancellation fees). It also makes money via its subscription service (called Unlimted – $9.99/month or $99.99 annually), giving free delivery on orders of more than $12.

Uber Eats Business Model

Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner, and a customer with the Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay small delivery charges and, at times, cancellation fees; Drivers earn through making reliable deliveries on time.

Coupang Business Model

Coupang is a South Korean eCommerce company. Coupang makes money by selling consumer items through its desktop and mobile eCommerce platforms. The company also collects fees from its food delivery, video streaming, and advertising services.

Amazon Business Model

Amazon has a diversified business model. Amazon’s primary revenue streams comprise its e-commerce platform, made of Amazon-labeled products and Amazon third-party stores. In addition to that, Amazon makes money via third-party seller services (like those fulfilled by Amazon), advertising on its platform, AWS cloud platform, and Prime membership.


Getir is a Turkish grocery and restaurant food delivery platform founded by Serkan Borancili, Tuncay Tutek, Dogancan Dalyan, and Nazim Salur. Salur got the idea for the company after wondering if food could be delivered nearly as quickly as taxis could be hailed. As a dark supermarket operator, Getir makes money by selling items at a 10% premium to traditional supermarkets and retailers. Margins are higher because the company only leases the dark stores’ warehouses. Getir also charges a flat delivery fee on orders above a certain threshold, with fees varying according to the country served.

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