Tag: Food delivery

Singapore – The Competition and Consumer Commission of Singapore (CCCS) has issued a warning to foodpanda for its misleading advertisement in a recent advertising campaign for its “Pandapro” subscription service.

According to a note from the CCCS, the Pandapro advertisement promoted ‘Unlimited Free Delivery on All Restaurants’ for the subscription service which ran from 1 July to 30 September 2024. This was displayed across multiple platforms including Foodpanda’s Instagram page, its in-app marketing, billboards and signages at public areas such as bus stops.

Following this, the commission stated that they commenced an investigation following a complaint on the advertisement. According to the complaint, the promotion promised “unlimited free delivery on all restaurants” for Pandapro subscribers. 

For CCCS, given that the ad is without any qualifiers, it could mislead consumers into thinking that Pandapro subscribers would enjoy free delivery on all restaurants available on Foodpanda. In fact, in respect of food delivery fees, Pandapro subscribers only received a $3 discount for all restaurants, or a discount of up to $6 for selected restaurants. 

Contrary to the advertised ‘free delivery on all restaurants, CCCS found that over 40% of food delivery transactions made by Pandapro subscribers on all restaurants over the advertising period required a residual delivery fee to be paid after the discounts were applied.

Alvin Koh, chief executive at CCCS, said, “When a business offers ‘free’ services to entice the consumer to try a service, it is not unreasonable for an average consumer to understand “free” to mean that nothing will be charged. It is crucial that businesses ensure that their claims are accurate. Transparent pricing is crucial for consumers to make informed purchases and to allow all businesses to compete fairly.”

Following this, CCCS has asked foodpanda to provide a full refund of subscription fees to customers who subscribed to Pandapro during the advertising period. It has also asked foodpanda to provide clarification to customers who had subscribed to Pandapro during the advertising period and the public on the terms of the Pandapro subscription.

Lastly, CCCS has asked foodpanda to review its existing and future marketing materials for Pandapro subscription to ensure compliance with Singapore’s fair trading laws.

Taipei, Taiwan – Uber Technologies and Delivery Hero SE have reached an agreement for Uber to acquire Delivery Hero’s foodpanda delivery business in Taiwan for US$950m in cash. The acquisition of foodpanda Taiwan is subject to regulatory approval and other customary closing conditions and is targeted to close in the first half of 2025. 

Separately, the companies have also entered into an agreement for Uber to purchase US$300m in newly issued ordinary shares of Delivery Hero.

Until closing, Delivery Hero is dedicated to continue operating foodpanda Taiwan as before, offering the best possible service for its customers and vendors. In the period following closing, foodpanda’s local consumers, merchants, and delivery partners will be transitioned to Uber Eats.

The deal will combine Uber’s global expertise in operating a high-efficiency marketplace with foodpanda’s extensive coverage across Taiwan and its relationships with beloved local brands. The deal will also give consumers greater choice across food types and price points by bringing the complementary groups of merchants on Uber Eats and foodpanda onto a combined platform.

Moreover, due to its existing presence in Taiwan, Uber is best placed to build upon the significant local operations developed by Delivery Hero and foodpanda over the past years, and invest further into an improved experience for consumers, merchants, and delivery partners.

Niklas Östberg, CEO and co-founder of Delivery Hero, said, “The strength of our Taiwanese business is a testament to the hard work of many teams over the last eight years. In order to build a world-leading service, we have come to the conclusion that we need to focus our resources on other parts of our global footprint, where we feel we can have the largest impact for customers, vendors and riders. This deal gives foodpanda an exciting runway in Taiwan and we wish them all the best in their next chapter.”

Meanwhile, Pierre-Dimitri Gore-Coty, senior vice president of delivery at Uber, commented, “Bringing together our distinct customer bases, merchant selections, and geographic footprints will allow us to deliver more choices and the best prices for consumers, stronger demand for restaurants, and more earnings opportunities for delivery partners. Taiwan is a fiercely competitive market, where online food delivery platforms today still represent just a small part of the food delivery landscape. We’re so excited about the opportunity to deliver even greater convenience and value that this transaction would unlock in the years ahead.”

Once completed, this deal would be one of the largest ever international acquisitions in Taiwan, outside of the semiconductor industry. It is worth noting that Delivery Hero SE previously confirmed the sale of select foodpanda businesses, albeit the only confirmation they had was for their SEA businesses.

Singapore – Online delivery platform foodpanda has announced the appointment of Jaslin Goh as its new vice president of marketing for APAC. 

Based in Hong Kong, Goh will be taking over from Anna Znamenskaya, and will be reporting to John Fang, CEO of foodpanda. 

In her new role, Goh will be heading the regional marketing function and will be working closely with local marketing directors to drive growth and brand love across Asia.

Taking up this role with over 20 years of experience, Goh was previously the chief marketing officer for mobile payment service PayMe at HSBC, heading the marketing, design and customer experience functions. 

Prior to that, she also held senior marketing positions in HSBC’s Wealth & Personal Banking function, WeLab, and Shangri-La Group.

Speaking on her own appointment, Goh said, “I’m super excited to join the Foodpanda family with its unique blend of Tech x qcommerce x F&B across 11 strong and flavorful markets. Food reflects the soul and unique idiosyncrasies of each market. I’m proud to become part of a business where we bring food and people together, through technology, yet in a grassroot, grounded way and is the glue for the cultural fabric for Asia’s best cities.”

Singapore – Around 51% of Singaporean respondents said they would consider grocery delivery via food delivery apps over going to the supermarket to save time shopping, a survey commissioned by Deliveroo revealed.

The survey by Deliveroo showed that food delivery platforms are becoming an integral part of life for many Singaporeans, with 68% of respondents stating that they consider food delivery now a part of their daily lives. Furthermore, data showed an uptrend of 80% expected to use food delivery services in the next 12 months.

With the projected surge in the use of food delivery platforms in the coming months, 62% of consumers now also expect to spend more on food delivery in the next 12 months compared to the last 12. The average spending on these delivery services has also increased to $118 per month, with those aged between 46 and 55 seen to be spending the most at an average of $169 per month.

Among the main reasons respondents cited for using food delivery services are lack of time for preparing meals (58%), and not wanting to cook (58%). In fact, 87%, or nearly 9 in 10 respondents, agree with the statement, ‘I make more of my spare time thanks to delivery platforms’.

The survey further revealed that some customers would willingly spend more for certain types of dishes, with 38% stating they’d pay more for healthier food and 35% opting to spend more on customised food orders.

These data show Singaporean customers’ need for personalisation and healthy ingredients as part of their diet, which food delivery platforms can take into consideration more.

Aside from food delivery services, the option of self-pickups has also grown in popularity. Over half of the respondents, or 55%, have stated they plan to increase their use of self-pick-up services on food delivery apps in the next 12 months.

Additionally, 54% said they consider using the same service when they’re going out anyway and they will be passing the area they’re planning to order from. Almost half (49%) also use self-pickup when they want to skip the long lines or waiting time at restaurants.

However, aside from food delivery orders for ready-to-eat meals, the platforms are also now facing growing demands for their services that go beyond the plate.

In fact, over half of respondents (53%) agree that they prefer getting non-food supplies via food delivery platforms and are planning to order these supplies in the next 12 months.

Around 49% of Singaporeans prefer getting their groceries delivered over having to go to the supermarket personally. This preference can be attributed to the need for convenience, with almost half, or 47%, of respondents saying they would consider the delivery service to save time from grocery shopping.

Deliveroo’s commissioned survey showed that Singaporean consumers are turning to food delivery platforms for services involving non-food items, with more than half, or 51%, of consumers stating they would consider using grocery delivery via food delivery apps in the event of buying large amounts of groceries.

With the growing use of food delivery platforms as a means for grocery delivery, the average monthly spending for consumers on groceries via food delivery services now totals $111. Half of the respondents further stated they intend to spend more in the next 12 months.

Food delivery services have also extended their on-demand delivery options to gift shopping. Costumes can now order gift items such as flowers, hampers, and balloons even on a tight timeline.

Over half, or 55%, of respondents said they prefer the convenience of having their gifts delivered via on-demand delivery services over purchasing them in-store. The main reasons for this are that many lack time to buy the gift items (47%), while others need them urgently (43%).

Half of the Singaporean respondents (50%) also agreed that they plan to order gifts via food delivery services in the next 12 months.

Another interesting piece of data is that 88%, or 9 out of 10 respondents, revealed they are supportive of food delivery platforms’ in-app features that allow customers to make contributions to charity. Furthermore, 89% showed their support for the platforms’ in-app features that allow customers to tip riders.

Jason Parke, general manager at Deliveroo Singapore, said, “The latest survey results reinforce how the role of food delivery services in Singaporeans’ day-to-day lives has further evolved in today’s landscape. Going beyond ready-to-eat meals, we see how customers are increasingly turning to food delivery platforms for other goods and services that add value to various aspects of their lives. As such, Deliveroo stays committed to bringing the neighbourhood to the doorsteps of consumers, transforming the way they shop and eat.”

Singapore – This Christmas season, Grab celebrates its food merchants across Southeast Asia by featuring their signature meals as the focus of the company’s latest billboard commercial at the Nasdaq Tower in Times Square. 

In this case, Grab has set aside the area to provide 53 domestic retailers visibility on the international scene. The program seeks to show the wide variety of culinary options that visitors can choose from when visiting Southeast Asia using the Grab app. 

The advertisement features a variety of regional favourites, such as Crispy Sisig from the Philippines, Prata from Singapore, Nasi Campur from Indonesia, Nasi Lemak Ayam Goreng from Malaysia, and Bánh mì from Vietnam.

Grab has used the billboard space since its launching in 2021 to thank and recognize Grabbers, its community of driver, delivery, and merchant partners that assiduously service millions of customers every day throughout the area.

Although Grab is known for its ride-hailing service, international passengers are also becoming more aware of its food choices. For travellers from North America coming to Southeast Asia, a significant inbound travel market for the area, this peak travel season offers an opportunity to solidify Grab’s lead in the food sector.

In line with this, Grab has created the Traveller Homepage to help travellers plan their trips, particularly in unfamiliar areas. This feature allows users to navigate a city within the Grab app. Travellers can browse for points of interest, peruse the region’s cuisines and restaurants, and save their discoveries to a personalised list, which is available for 33 of the biggest cities often visited by visitors in Southeast Asia.

Singapore – Online food delivery platform foodpanda has announced the appointment of John Fang as its new CEO to lead and grow the business in the APAC region. 

Fang will succeed Jakob Angele, former foodpanda CEO for APAC who served for nine years in the company, six years of which as the CEO. 

In his new role, he will continue to lead and grow foodpanda’s business, staying focused on bringing value and purpose to the food and grocery delivery ecosystem that foodpanda serves. 

Fang has been with foodpanda for six years, taking various leadership roles since he joined in 2017. He served as CEO for foodpanda Taiwan in 2017 and most recently held the position of chief international officer at Delivery Hero, where he managed business operations across foodpanda’s 11 markets.

Prior to joining foodpanda, he also served as the chief operations officer for global e-commerce marketplace Groupon Taiwan.

Fang’s appointment comes weeks after Delivery Hero, foodpanda’s owner company, announced that it will be selling foodpanda’s activities in select markets in Southeast Asia. 

Singapore – Global food delivery company Delivery Hero, has confirmed that there are negotiations regarding the potential sale of its subsidiary brand, foodpanda, within select markets in Southeast Asia. 

In a statement, the company plans to sell its activities under the foodpanda brand in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand.

The negotiations are currently in their preliminary stages and it is still uncertain and subject to various open points whether this will lead to a definitive agreement. The purchase consideration for the entire transaction is still under negotiation.

Regarding this news, media sources report that it caused shares in foodpanda to lift as much as 13.5%, with Delivery Hero focusing on reaching profitability while maintaining growth as investor confidence in the company started to wane after a pandemic-driven boost.

Just recently last month, Niklas Oestberg, CEO of Delivery Hero, notably said that Asia was the segment where the company saw the most opportunity to invest.

As of current, potential buyers of the business are still unconfirmed and undisclosed by the Delivery Hero Group. However, several news outlets claim to report that tech platform and super app provider Grab could pay the equivalent of as much as a billion euros for the unit.

Kuala Lumpur, Malaysia – Malaysia is currently experiencing a nation-wide ‘blackout’ of food delivery services, as local reports have suggested that a large number of food delivery riders will be protesting starting this day amidst requests to improve payment across food delivery rider partners.

According to a report from the Free Malaysia Today, the protest had been planned two to three weeks ago, as shared by the organiser Zulhelmi Mansor of the Persatuan Penghantar P-Hailing Malaysia. The posters posted on social media were posted with Grab and foodpanda logos.

In response to the protests, Grab Malaysia has released a statement via The Star, clarifying that there was no reduction in base fares for their delivery services. Instead, it was due to a glitch in its system, where the rider noted a discrepancy in his earnings.

“We have since rectified the issue and have transferred the shortfall to all affected partners, and clarified the matter via our official communication channel to our partners on July 21. We apologise for the inconvenience this may have caused for our partners and would like to encourage our partners to reach out to us,” they stated.

Grab Malaysia also added that in the past few months, they have introduced multiple efforts to support their delivery-partners, as well as releasing multiple promotions and campaigns to benefit their riders.

The recent updates in Malaysia’s food delivery space line up with the constant growth of food delivery companies in the country, with players including airasia ride and DeliverEat. Recently, airasia ride announced that its offering its gig riders full-time employment in a move to offer job stability and enhancement of income opportunities.

Strikes amongst food delivery riders have increased in the Southeast Asian region. For instance, foodpanda drivers in the Philippines have protested over poor pay conditions. As a result, the country’s National Labor Relations Commission (NLRC) have recently ordered foodpanda to pay the seven dismissed riders around PHP2.2m who have participated in the protest.

2022 sees most countries moving into endemic status with 61.6% of the world’s population receiving at least 1 dose of COVID-19 vaccine. Whilst this statistic gives consumers the confidence to pursue a similar lifestyle to that of pre-pandemic, varied rules and regulations around mask-wearing, temperature checking, and in-dining seating capacity have affected dine-in volume at restaurants. Governments have also enacted strict policies to curb the spread of the virus allowing only fully vaccinated customers to dine in. This evidently impacted the channel dynamics and has shifted the channel mix in the food business.

But does this mean the dine-in business model is over?

The Quick Service Retail (QSR) remains resilient despite the fluid circumstances and it is essential for businesses to pivot towards contactless channels such as self-service kiosks, bring-your-own-device (BYOD) ordering system, and drive-in capabilities to meet the demands of the new norm. With disruptions to the dine-in services, brands are aggressively scaling up contactless delivery through e-commerce and giving rise to food aggregators. Will food aggregators dominate the way customers access food?

1. Understand your customer base

Countries with high mobile internet penetration may not necessarily translate into high food aggregators adoption. We may see higher demands in the urban areas with easy access to smartphones, internet banking, and mobile wallets usage, however, the outer cities in which the dine-in would still prevail are equally important to drive the volume.

2. Top-notch food quality

Most restaurants are preconditioned to serve food of the highest quality in a dynamic dine-in environment. But when it comes to food delivery, new service guidelines have to be designed to guarantee the same food quality are served considering longer delivery time to reach the customers. Working closely with aggregators especially in determining the delivery radius so that the food quality is intact upon reaching customers is important. Added investments in packaging are also required for the food to withstand the delivery journey.

3. Attractive on-going deals

With aggressive customer acquisition activities, each platform offers a plethora of deals to gain share of throats. Heavily subsidized promos to entice customer transactions are apparent in today’s e-commerce market. When value becomes parity, what would be the differentiation for customers to migrate from one platform to another? Strategic pricing and limited menus probably come into play in such scenarios.

4. Loyalty engines

Gamification, point systems, and rewards are common features on food aggregators today to ensure repeat purchases and consistent Daily Active Users (DAU) to avoid customer churn. Nowadays, customers are value-centric and preconditioned to compare the best deals utilizing social media and forums for peer reviews and validation.

5. Premium fees

Delivery platforms typically come with fees or differential pricing. Customers who are affluent enough would be comfortable paying the delivery fees for convenience and ease. However, value-conscious customers will look for an alternative such as self-collect options or discounts before making the final purchase decision.

With the uncertainties of the endemic, it would be premature to say that dine-in will return to its full glory with dining-in protocols and fluctuating COVID cases. Whilst food aggregators promise alternate access to food, there are many parameters to be considered for it to drive profitability and scale. The current customer acquisition mode requires significant investments into subsidies for the platform to sustain in the long run to consistently generate transactional volume. Both channels will continue to co-exist. Depending on the market dynamics, the channel mix will shift accordingly.

This article is written by May Ling Chan, CMO of KFC in Malaysia.

The article is published as part of MARKETECH APAC’s thought leadership series What’s NEXT. This features marketing leaders sharing their marketing insights and predictions for the upcoming year. The series aims to equip marketers with actionable insights to future-ready their marketing strategies.

If you are a marketing leader and have insights that you’d like to share with regards to the upcoming trends and practices in marketing, please reach out to [email protected] for an opportunity to have your thought-leadership published on the platform.

Singapore — Gobble, a social food ordering platform, has announced raising US$1.3m in a seed round co-led by BEENEXT and Flash Ventures. Notable angel investors who have backed Gobble in this round include Warren Tseng, former RGM, Uber APAC, Siddharth Shanker, former General Manager at Deliveroo Singapore, and Abhishek Sahay, regional director of foodpanda.

Gobble will use the funds to launch its platform across colleges, expand its tech and product team to scale, as well as improve the value proposition for restaurant partners. The platform was founded in 2021 by Ashwin Purushottam, founder and CEO, and Domenico Tan, co-founder and COO, who previously held extensive experiences working with companies such as Deliveroo, Foodpanda and Travis Kalanik’s CloudKitchens prior to founding Gobble.

In a survey conducted by the Gobble team among about 100 students from NTU, NUS and SMU, it was found that 96% already gift food to friends. With the social-food ordering market expected to grow to $4.5 billion in Southeast Asia by 2025, Gobble is the only player that focuses on group-based social ordering.

With that data, Gobble is setting its focus on redefining social interactions for food ordering, making it more collective and fun. Gobble has three distinct features — One, ‘Food Feed’ lets people view and order what their friends ordered instead of scrolling endlessly through delivery apps. Second, one can gift food to anyone with a cheeky message. Finally, students can create a ‘Gobble Party’ and invite their friends to group-buy discounted meals.

Ashwin Purushottam, founder and CEO of Gobble, shared the company’s vision, saying, “Through Gobble, we are building APAC’s first social food ordering platform built around food and friends. We not only benefit the end-users but also our restaurant partners through group orders.’’

Dirk van Quaquebeke, the managing partner at BEENEXT, commented, “Gobble is addressing a unique market opportunity. By using highly scalable technology, Gobble will bring millions together through food. We are thrilled to partner with the team on their journey to grow and expand to new markets.”

Lorenzo Franzi, founding partner of Flash Ventures, added, “The team is bringing a very human and local angle to food ordering and gifting while offering a completely new experience compared to the existing food platforms. We are excited about the strong team with deep experience, and are impressed by their early execution.”