FOODPANDA BUSINESS MODEL
As we all know foodpanda is a food delivery system that delivers food to your door from the restaurants around your location. Many people have questions about their business model. How do they work? How do they earn money? After all, it gives the customers a huge amount of discounts with free delivery most of the time.
What is foodpanda?
Foodpanda is the third party between the food sellers and buyers, established in 2012. It covers 50+ countries all over the world. The online food delivery marketplace is owned by the Berlin-based company delivery hero SE. The headquarter of food panda is in Berlin, Germany. Imagine you’re hungry and nobody is home. You don’t even know how to cook. Instead of starving all day you can grab your phone and open the food panda app/ go to their website. You’ll see restaurants menu around your house with ratings. Choose the item you want as your lunch today and place your order. Yes! you’ll get the food with an unbelievable discounted price and maybe free delivery charge depending on your location.
Sounds amazing! But here comes the real question what is the business model of food panda and how do they earn? Let’s know this.
REGISTRATION FEE:
As time is moving, people are getting more into home delivery rather than going out for cravings as well as restaurants are nowadays try to provide the custom home delivery facility. For that foodpanda is a great solution. Restaurants don’t need to take extra initiatives to find and manage delivery services. They choose to get connected with food panda. For connecting this third party by listing into their app, restaurants need to pay approximately $100 — $150for the first time. That is how food panda gets its first payment from a restaurant.
ADVERTISEMENT :
Advertisement is the golden key to boost up a business. As foodpanda is an online market place for restaurants. Especially for the new restaurants in the area that needs your attention. Food panda does this for you by advertising the restaurant on the app.
DELIVERY CHARGES:
As foodpanda delivers food to your door, they demand a delivery fee on every order. Though most of the time the delivery charge costs free depending on the location. This is another way of food panda earning money.
BY SUGGESTING:
If you open the foodpanda app/website you’ll get suggestions of banks, credit cards, and other payment methods. Food panda charges from those companies and banks for suggesting them to the customers of foodpanda. This one is foodpanda’s affiliate income.
COMMISSION:
Foodpanda claims 20% commission from every order through them. And the restaurants also sign the agreement as they get popularity and don’t face recession. Besides, they don’t need to pay the electricity bills, place rent and other service costs. This proves profitable for the restaurant owners.
Now we know, how food panda earns money. Here comes how they provide the customers with huge discounts? Do they go through loss?
Its true foodpanda has to face a huge number of risks. According to research, foodpanda spends about 35% behind every order from their pocket. They consider this as an investment as things are being more online-based, in the future people will prefer to get foods sitting home rather than going out and choose. Already foodpanda captured the base in the online marketplace.
Now it’s up to you. What do you think about their business model? Do you want your business to follow foodpanda business model?
