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.
A more detailed look at revenue generation is provided below.
Commissions
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.
Subscriptions
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.
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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.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
