Foodpanda Business Model: How Does Foodpanda Make Money?

Foodpanda is one of the most active food delivery platforms in the Asian food industry. It has a great chain of local food points. All these local food places have a great platform to showcase themselves and deliver to customers.

Foodpanda has a hyperlocal delivery system, which is said to be a system for local customers. A customer who is based in a particular area wants local items. This system helps them get those items by establishing a network between the customer and the vendor or suppliers. All of this work is done with the help of a specialized digital platform.

In this article, we will discuss Foodpanda Business Model and Revenue Model. With Foodpanda, users can get their orders delivered to their door without traveling. They can also look at the menu, compare prices, get home delivery, rate the restaurants, and more with just a few clicks.

Foodpanda has a great and well-versed Foodpanda Business Model. Let us go through it.

Foodpanda: Facts, Statistics, And Figures

• Foodpanda is a leading food and grocery delivery brand in Asia.
• Delivery Hero owns it and is its lead brand.
• The founder of Foodpanda is Jacob Angele. He founded it in March 2012 in Berlin, Germany.
• It is currently served on 12 Asian platforms, excluding China and other countries.
• The net worth of Foodpanda is $40-$50 million.

Foodpanda Business Model

Let us now discuss the Foodpanda Business Model. It will help you understand the way an online food delivery service works. First of all, Foodpanda has both, a mobile app and a website. It deals with the orders from both the UIs with full potential.

The 4 parts included in the app like the Foodpanda online food ordering system are the customer, the owner or admin, the delivery partner, and the merchant. These four people work together directly or indirectly to make an On-demand Food Delivery System successful.

Now, let us see a clear breakdown of the system’s workings.

• An administrator contacts all the local merchants and the restaurant owner to join the system for their increased sales. All these food business owners are local to a particular area, so people to select their favourites easily.
• These shop owners then include all the details of their restaurant in the app. These details included in the app are the menu, time off hours operating, packaging info, working days, off days, etc.
• When customers download this app, they can easily sign in using their social media account or email address. In some apps, they can also use their registered phone number.
• They then search for their favourite food items using the search bar on the customer app UI. They order their food by following simple steps. They can confirm their orders by their preferred payment mode.
• Once the order is placed, a delivery boy arrives at the restaurant and picks up the order. Through his app UI, he gets information about the customer’s location. He delivers the order to the place and can get a tip from the customer. The admin manages all the activities of a delivery partner.
• The customer UI shows all these activities in real-time. Customers can see the location of the delivery partner and track the status of their orders.
• Every order placed using the app or the website gets earnings for the food business owner and the app owner.
• This is how the app for the food delivery system works. This system is common, with minor changes for all the online food delivery platforms.

Also Read: How to Start Restaurant Business? A Standard Checklist

Exploring Foodpanda Revenue Model: Gaining an In-Depth Understanding of Their Earnings

Registration Fee

A restaurant needs to pay a registration fee for the same. Registered on the Foodpanda app. The registration fee is a one-time payment, i.e., $100 or $150.

Restaurant Commission 

Any restaurant order placed through the app receives payment in different methods. The restaurant has to give the app a commission for every order.

Delivery Fee

Whenever an order is placed with the app, the customer needs to pay a delivery fee every time. This is also a way of earning for the app.

Advertisements

Suppose you are opening a new restaurant as a business startup. You need a place to advertise your business. Foodpanda provides you with a place to do the same. You can advertise your food business on the app. You need to pay a certain advertising fee to the app. This way also makes Foodpanda open to revenues.

Read Also: Launch your Food Delivery Business with Foodpanda Clone App

Benefits of the Foodpanda Business & Revenue Model

Customer Engagement

The online food delivery system has increased customer engagement with the restaurants in their area. They get to know the restaurants and their services. An app like Foodpanda helps the customer locate the business.

It has a two-way profit. This increases the user’s engagement with the app and eventually helps the app make money. It also helps the restaurants get an advertisement that makes their presence well-known to everyone.

Local Restaurant’s Support

As discussed in the above point, local restaurants are prof enormously from this service. It helps them to get a well-known presence in front of the customers.

These restaurants have also benefited from the app during the COVID-19 pandemic. When all the restaurants were closed, local and small business restaurants faced many issues in sales and huge losses.

An Online Food Delivery App was an advantage to them in those times. People usually order food from these apps as they are trusted, 100% safe, and hygienic. This way, the business owner and the app owners receive the benefits.

Foodpanda Business Model Canvas

Foodpanda operates as an online food delivery platform, facilitating connections between customers and restaurants through a user-friendly mobile app and website. Their business model, captured in a Business Model Canvas, is structured as follows:

Demand Increased for Online Food Delivery Platforms

In 2020, the COVID-19 pandemic increased the importance of these platforms like Foodpanda, Zomato, UberEats, Grubhub, etc. These platforms saw an almost $3 billion increase in revenues in the second and third quarters of 2020. This is an enormous amount of money. People understood the importance of the apps and supported them with all their hearts.

Improved Logistics and Statistics

With the help of these apps, restaurants are seeing an improved way to keep their logistics and stats. They have seen an increase in the number of deliveries. They can easily see their real-time sales and increase in sales on the panel. This helps the restaurant to calculate the revenue and other matters with no hustle.

Frequently Asked Questions

1. How Does Foodpanda Make Money?

Foodpanda primarily generates revenue through various channels, such as commissions from partner restaurants, delivery fees, subscription services, and advertising.

2. Does Foodpanda Charge Customers for Delivery?

Foodpanda often charges customers a delivery fee for each order placed through their platform. This fee may vary based on distance, order value, and ongoing promotions.

3. Are There any Other Revenue Streams that Foodpanda Utilizes?

Apart from commissions, delivery fees, subscriptions, and advertising, Foodpanda may also explore additional revenue streams such as partnerships with food brands for promotional campaigns, data monetization, or offering premium placement options for restaurants within its app or website for a fee.

Wrapping Up

We have discussed everything about the app with you in this article. You can get everything detailed with this article without checking different things out.

If you are also planning to start an online food delivery Business or create a hyperlocal Foodpanda business model, then you must contact us. We have been providing top-class developers to people who want to have any app developed.

You can contact us through email or the contact number if you have any queries.