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Foodpanda Business Revenue Model

What is foodpanda?

Foodpanda is a online food ordering mobile app that connects users with thousands of local food point. users can browse through various menus and place orders for home delivery or take-away at the best price. you can order from a wide variety of delicious food online With just a few clicks. foodpanda delivering you with food point menus, customer reviews and more for over 5000 restaurants spread over 45 cities. Foodpanda business revenue model.

How Does it Work

Foodpanda is a centre point where they connect eateries how are not providing delivery service to customers that wants them delivered.

Foodpanda generate profit via home delivery fees that it charges. Of course that is not a much at the moment as cost increase their charges but as they grow more in future, it might decrease the cost for them such as:-

1. Purchase in bulk and discounts from food point. – Since they are buying a lot then why not a discount? But they requires this from consumers demand.

2. Higher network to decrease time duration. – If they are small then they need to be all places, all the time. That reduces efficiency and profits. Economies of scale are a winner here.

3 Take consumer’s cash before delivery. – discount delivery services coupons could be sold upfront for Foodpanda to get cheap financing alternative compared to high interest loans from financial institutions.

4. Advertise. they could advertise for Restaurants that are not so popular or even special edition homemade food that does not come every day.

5. Not just food. “I need some flu medication from the pharmacy delivered… Yes I can’t even walk properly”. With a good network they could basically deliver anything.

If they can fulfil all these five terms, we guess foodpanda would have grown about five times their current size.
On-demand mobile applications is a rapidly growing business trend that grabbed the massive limelight in past 2-3 years. Now, we have many successful examples of on-demand mobile apps that have capitalized on-demand services like Uber, Postmates, Instacart, Dash, GrubHub, Airbnb, Handy, Drizzy, Zeel.

Why on-demand apps are on the rampage?

With the popularity of Uber business models with on demand app ideas got validation and trend started booming thereafter.

Economy statistics for Foodpanda business revenue model

• 45% of adult population have used at least one on-demand service.
• 55% of people offering services in on-demand economy experienced improved financial status
• 46% of on-demand customers have an annual income of less than $50,000 and only 22% have an annual income of more than $100,000 or more. It means that on-demand economy is not for wealthy only.

Scope of on demand food delivery apps

Considering the recent investment way coming out from the venture capital firms and also the statistics mentioned above regarding on-demand economy, it gives a positive approach that on-demand economy is here to stay.
When you need it the most, the on-demand app economy allows you to use it to order anything at the time. Food delivery, ride to a place, package delivery helping some other people to build book shelves, booking a automatic getaway, today’s foremost application technology and app economy has got covered many things that has made consumer’s life easy, where they can rely on powerful on-demand apps for finishing their daily chores as well as special needs.
on demand by simply tapping on their smart phones. The on-demand economy has so far proving to be good for consumers, service providers including technology platforms.

Online Food Delivery Apps

The appetite for food delivery has never been so great as it can be seen in the year 2016, which is evident from the immense growth in takeaway food and home delivery sector, such that it is outpacing the restaurant industry. This is all due to consumers’ priority to the convenience and eases that on demand food delivery apps offers.

Decision Convenience

– Ratings and reviews for food point and its food, from users of food delivery apps, which helps you decide fast and make it easy to choose.

Location Convenience

– Customers can expect to receive hot meals or whatever they feel like eating, get delivered at their doorsteps at any time.

Payment Convenience

– Customers can pay fast and in an easy way using such apps with cards, PayPal accounts and wallets like Apple Pay and Android Pay.

Repeat Customers’ Convenience

– Customers can make it even faster when they go for regain. Customers’ address, payment details, favourite food to re-order can be bookmarked for next easy food order.
Another fact to on demand food delivery business is that some of the food start-ups in Asia, Europe and the US have failed. The prime reason behind such failures is the complication involved with the three-sided business model that needs to satisfy customers, food point, and delivery. So this is the peak time and now the market will see the major shift in the way customers are buying and eating food.
There are three weighty business models prevalent in this business today which is:
• The order only model
• The order and delivery model
• The fully integrated model
Each business model may pose different test and may have its own merits or demerits. So the firms can grow as market winners when they choose the business model considering the recent shift being observed in the customer behaviour.

Business and revenue generation model of food ordering platforms


The delivery part is mostly handled by restaurant owner. so, this is not all you need to know for starting your online food ordering and delivery website or mobile application. Below are some other critical points;
• Online Food Ordering systems partner with local restaurants that offer home delivery, and prepare a database.
• Every food order placed through the website or mobile application, the food point gives a pre-decided commission.
• Food point can also get featured on the website homepage for publicity.

We do for you!

If your motive is to start-up and build the next chartbuster on-demand food app like food panda, then contact us today. Our expert team will listen you, experience and consultative approach towards the business, in the field of on demand apps, can help you shape an outstanding and scalable on demand food app. Hire us for your dream on-demand mobile app development now, by choosing us as your technology partner.

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