Here's What No One Tells You About Business Model Of Foodpanda

Foodpanda is an online food ordering mobile app that connects users to thousands of local food points.  Users can browse through various menus and place orders for home delivery or pick up at the best price.  You can order from a wide variety of delicious food with just a few clicks.  Foodpanda offers you food point menus, customer reviews and more for over 5000 restaurants spread across 45 cities.

Foodpanda was launched in Singapore in March 2012 and expanded to 16 countries by the end of the year.  It was then expanded to seven more countries, to create a total of 23, as of February 2013.  The company said it aims to end-to-end in 40 countries in Asia, Europe, Latin America, the Middle East and Africa.  Q1 2014 and achieved it.  A New York Times article stated that Ralph Wenzel and his company are proof that the method works about rapid expansion plans.

Mission Of Foodpanda

Foodpanda’s mission is to provide customers with an easy and secure way to order from the best takeaways in their area

Foodpanda LOGO

Marketing Mix Of Foodpanda


The use of digital marketing has played a huge role in creating brand awareness for Foodpanda.  The company periodically introduces something new and inventive in terms of food festivals, offers and incentives to maintain the loyalty of its customers through email marketing.

It has used social media to launch many advertisements.  It has a Facebook page displaying regular updates and interactions to maintain visibility and brand value. It also has innumerable followers on Twitter.  Friendly applications have been a great source of entice customers in the case of Foodpanda.  Its tagline is a fitting description Foodpanda is in your pocket.  It reminds customers of easy and quick availability through Apple and the Google Play store.

Promotional advertisements are also placed on various advertisements to maintain brand recognition.  Promotional programs have been launched in popular malls, television, radio, cinema, magazines, newspapers, train hoardings, bus hoardings and hoardings.  Since December 2015, it has struck a deal with the Indian online railway system under which it is possible for a customer to order food while traveling


Foodpanda has become a huge online portal and this has been possible due to several pricing policies by the brand.  It has adopted a value-added pricing policy as it provides quality items to its customers for a fair price.It faces competition from many brands and has therefore also adopted a competitive pricing policy that allows it to maintain a fair price for goods. Customers are given many incentives such as discounts and special offers to distance them from rival brands.  This makes its services more affordable and ultimately leads to more orders and better revenue for Foodpanda.


Foodpanda is an international company that allows ordering food from local restaurants through websites and mobile applications.  Its network is spread all over the world in about forty-three countries with headquarters base in Berlin, Germany.  Foodpanda has relationships and deals with an estimated forty thousand restaurants in the global market.It started in Singapore and by the beginning of the year 2016 was running in Latin America, Eastern Europe, Russia, Africa and Asian countries such as India, Bangladesh, Thailand, Singapore, Malaysia and Pakistan.  Foodpanda is the most popular online site in India for ordering food.Its nearly four thousand restaurants have delivery points located in forty cities including Hyderabad, Mumbai, Bangalore, Chandigarh, Pune and Delhi.  Its distribution network includes more than two thousand partners such as Mast Kalander, Beskin Robbins, Nirula, Subway and Pizza Hut.  It has trained employees to successfully meet customer demands


Foodpanda ensures a healthy, tasty and unique experience of eating without the hassle of traveling or pre-planning.  It is all about ordering through mobile and online as it connects customers to the restaurant of their choice.

The brand sends the ordered food directly to restaurants that later pass it on to customers.  A simple method is to order food.  A customer must enter a postcode on the site and then browse for food items from the list of available restaurants. Items can be easily selected while browsing through the menu.

At the time of placing the order, it is necessary to first enter an address and then check-out.  Foodpanda confirms the order and estimated delivery time by sending an SMS.  Restaurants are ordered about and later distributed to customers. Choosing, ordering and paying through online applications.  The company has a review section on the pages of the restaurant, where a consumer can comment on a number of features such as delivery, sales process, overall impression and taste.

Foodpanda Business Strategy

How Does Foodpanda Works ?

Foodpanda is a simple website and app interface that reduces the differences between restaurants and their customers.‚ÄĆ‚ÄĆFoodpanda has a food ordering app that customers / users can use to order food from local restaurants. ¬†The user will see the nearest restaurant ready to serve food and the user can easily choose the food of their choice from their favorite restaurant. ¬†Once a food item is added for the cart user, they can check out and pay via the online payment gateway or cash on delivery.

Once the order is confirmed a notification goes to the restaurant on their merchant app.  The restaurant will have to confirm this order and start preparing food for its customer.

Meanwhile, as the order is confirmed from the restaurant, a delivery signal is sent to all delivery partners on their delivery partner app. ¬†The one who accepts this request is entrusted with the responsibility of ordering food.‚ÄĆ‚ÄĆThe delivery partner arrives at the respective restaurant to take the food order and takes it to the customer.‚ÄĆ‚ÄĆA customer can track the entire process from food delivery to food preparation on their app. ¬†Live location tracking is a well-known trend in the food ordering and delivery business

How Foodpanda Works

Also read: Caf√© Coffee Day : India's First Popular Caf√© Chain[A Case Study]‚ÄĆ

How Foodpanda Earn Money

1. Registration Fees From The Restaurant‚ÄĆ‚ÄĆ The registration fee for restaurants in Foodpanda is for adding their list to their app. ¬†These restaurants, once added to Foodpanda, can be seen by customers searching for local restaurants. ¬†This registration amount is $ 100 to $ 150. ¬†This is a one-time registration amount.

2. Commissioned From Restaurant ‚ÄĆ‚ÄĆFoodpanda charges commissions from restaurants on every food order they receive through the Foodpanda platform. ¬†This commission is generally between 15% and 25% inclusive of all taxes.‚ÄĆ‚ÄĆDepending on the location of the restaurant, a restaurant's dependence on the number of foodpanda and orders, a commission is taken to consider these factors.

3. Delivery Fee From Customers‚ÄĆ‚ÄĆ There is a delivery fee for each order that a customer places on the app. ¬†Apart from this, there are other taxes which customers have to pay.

4. Advertisement ‚ÄĆ‚ÄĆFoodpanda is a marketing platform for many restaurants, especially for newcomers. ¬†Visibility of restaurants is increased by registering on Foodpanda. ¬†In addition, restaurants can pay a certain amount to advertise their brand on the app.

5. Affiliate Income‚ÄĆ‚ÄĆ Foodpanda makes money by offering its customers suggestions for credit cards of various banks. ¬†In addition, banks offer discounts on their cards and offer on their cards to conduct more transactions through their bank. ¬†This helps Foodpanda and its users as more customers are willing to pay online

How Foodpanda Makes Money

Also Read: Reasons Why Business Model Of Trivago Is Getting More Popular In The Past Decade  

Expense For Foodpanda

  1. Development and maintenance cost of online ordering system including website, merchant app, customer app, delivery partner app and backend system for managing all these systems.
  2. Pay and provision to full-time employees.
  3. Salaries and incentives to distribution partners.
  4. Administrative Cost
  5. Customers are given benefits in the form of offers
  6. Returns and Refunds
  7. Miscellaneous expenses
Swot Analysis of foodpanda

Strength Of Foodpanda

Excellent Platform - Foodpanda processes various orders for customers and ships them directly to partner restaurants.  After the order is processed, he delivers it to his customers.  The service is available to customers through mobile applications and websites, where customers can order food by entering their postcodes on the website.  Customers can browse for food from the list of restaurants shown on the website.  After selection, customers have to enter their address and proceed to checkout.  Related restaurants receive orders and food will be delivered to customers.  It will also send an SMS for order confirmation and estimated delivery time.

Online ordering - Foodpanda accepts orders through its websites and mobile applications.  It connects customers and restaurants.

Investment - Foodpanda has raised $ 318 million of venture capital.  It raised nearly $ 20 million in initial funding from Rocket Internet and investment AB Kinnevik during the year 2013.  During the same year, iMENA Holdings invested approximately $ 8 million.  It also received another funding of approximately $ 20 million during the year 2014.  Goldman Sachs also invested approximately $ 100 million in Foodpanda.  All these findings are, in fact, a major strength for the company.

Various international brands - Foodpanda - have been taken over by the firm Delivery Hero during the year 2016.  The Delivery Hero brand has several international brands.  In Asia and Eastern Europe, it is Foodpanda, in Europe, Canada, and in Australia it is Fudora, in the Middle East it is Hellofood, and in Russia it is a delivery club, etc.

Global Operations - Foodpanda has its business in various countries in Eastern Europe, Middle East and Asia.

Global Re branding - During the year 2017, Foodpanda has re-branded with updated logs in all countries from Orange to Pink.  The iconic panda remains at the forefront of its logo.

Quick Delivery - Foodpanda processes food delivery with less time as it tries to sync its customers to nearby restaurants.

Trained Staff - Foodpanda has trained people to make their deliveries faster.

Wide Coverage - Foodpanda has a wide coverage of restaurants and is adapted to the vast needs of customers and food preferences.

Good Customer Support - Foodpanda has excellent customer support and functions for their needs and food preferences.  It keeps changing the food menu and tries to expand it to associate with restaurants.

‚ÄĆ Also Read: Dominos - A Curious Case Study

Weakness Of Foodpanda

Order from nearby restaurants - Orders are available only from restaurants that are in the area of ‚Äč‚Äčthe order placed. ¬†This is a weak point because not all restaurants will be available in all locations.

Tap on Free Delivery - The quantity required for free delivery is sometimes a bit too much for one person.

Yet to cover more - Foodpanda is not yet covered in all areas in one city.

Opportunities For Foodpanda

Growing Market - Seems to be in the right fit as a growing market is likely to have potential customers.

Customer Expansion - Foodpanda should expand its horizons to meet the needs of more customers.  It would have to tie up with many restaurants and bring more customers to the website.  This will provide more opportunities for business.

Enhancing Customer Loyalty Programs - Foodpanda can establish customer loyalty programs to keep the customer with them.  They can initiate some offers, some reward programs to provide them.  This will provide a huge opportunity for them.

Threats For Foodpanda

Increased Potential Competitors - There is an increased competition in this market.  This is a major threat to the Foodpanda business.

Fewer Customers - In its initiation years, the business takes one less customer.  Businesses must bring out ways to increase their customers as this can be a serious threat to the business.

Changes in Economic Conditions - Economic changes in the world will affect business.  It is also a big risk for the company.

Ease Of Visiting Nearby Restaurants - People may prefer to go to a nearby restaurant rather than ordering through the website.  It is also a threat to business.

Learning From Foodpanda

Since it is an e-commerce business, the best strategy they have used is to target customers when they are online in front of their computer and encourage them to try Foodpanda.  This is why their focus has always been on digital marketing strategies.  They have used above three strategies which is email marketing, social marketing and mobile marketing to its best use and that is why Foodpanda has become a big brand.

What Is Important In The Case Of Mobile Marketing ?

The time spent on mobile is skyrocketing, but what marketers should not forget is that consumers can download many apps, but only spend their time on some of them.Creating and maintaining applications can be a huge upfront expense, and a resource drain to keep updated.  But if you have a sound business reason behind your growth then it will be easy to measure your success.

What Is Important In Email Marketing  ?

It is important to respect your decision and work hard to show your quality, not to spam and annoy the customer when they have unsubscribed you.