Foodpanda Business Model: How Does Foodpanda Make Money?

Foodpanda Business Model

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

Foodpanda has a hyperlocal delivery system. A hyperlocal delivery system is said to be a system for local customers. A customer who is based in a particular area wants the local items. This system helps them get those items by setting up 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 have a look at the menu, compare prices, get home delivery, rate the restaurants, and many 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

  1. Foodpanda is a leading food and grocery delivery brand in Asia.
  2. It is owned by Delivery Hero and is its lead brand.
  3. The founder of Foodpanda is Jacob Angele. He founded it in March 2012 in Berlin, Germany.
  4. It is currently served on 12 platforms in Asia, excluding China and other countries.
  5. 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 that are included in the 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 to know the working of the system.

  1. 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 for people to easily select their favourites.
  2. 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.
  3. When a customer downloads this app, they can easily sign in to the app using their social media account or email address. In some apps, they can also use their registered phone number for the same.
  4. 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.
  5. Once the order is placed, a delivery boy reaches the restaurant and picks up the order. Through his app UI, he gets information about the location of the customer. 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.
  6. The customer UI shows all these activities in real-time. The customer can see the location of the delivery partner. They can also track the status of their orders.
  7. Every order, that is 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.

How to Start Restaurant Business in 2022? A Standard Checklist

Foodpanda Revenue Model

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 order that is placed through the app from a restaurant receives a payment by different methods. On every order, the restaurant has to give the app a commission. A restaurant receives a commission for each order placed.

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.


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

Foodpanda Benefits

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. A platform like this helps the customer locate the business.

It has a 2-way profit. Through this, the engagement of the user on the app increases and eventually helps the app make money. It also helps the restaurants to get an advertisement that helps them to make their presence well-known to everyone.

Local Restaurant’s Support

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

These restaurants have also seen a benefit from the app in the COVID-19 pandemic. When all the restaurants were closed, local and small business restaurants were facing lots of issues in sales. They were facing huge losses.

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

Demand Increased for the 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 increase of almost $3 billion in their revenues in the second and third quarters of 2020. This is an enormous amount of money. People got to understand the importance of the apps and supported these apps with all their hearts.

Improved Logistics and Statistics

With the help of these apps, the 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.

Wrapping Up

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

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

If you have any queries regarding the same, you can contact us through email or the contact number is given to you.

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