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Foodpanda: Changing the Way Bangladeshi Eat Meals

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DOI: 10.4135/9781526444561

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

Online ISBN: 9781526444561 © Jashim Uddin Ahmed and Asma Ahmed


This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or
self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be
deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your
university, and cannot be forwarded outside the university or used for other commercial purposes. 2018 SAGE
Publications Ltd. All Rights Reserved.

Abstract
This case study investigates the key competitive advantages, marketing strategies, and
challenges of Foodpanda, an online food delivery service in Bangladesh. Foodpanda operates
globally and started operations in Bangladesh in 2013, currently operating in Dhaka,
Chittagong, and Sylhet. Online food delivery service has a huge potential in Bangladesh with
the rapid growth of e-commerce and extensive use of social media sites such as Facebook and
Instagram. The target customer groups are busy urban people. With changing food habits in the
society, high internet usage, and a mobile based easy ordering system, the future of Foodpanda
seems promising. However, Foodpanda is facing fierce competition from local players in the
market, mainly HungryNaki. This case highlights how Foodpanda is focusing on various
strategies to: 1) retain their market share, 2) deliver food on time through busy city traffic, and
3) be more aggressive in addressing the competition.

Keywords:
Bangladesh, online food delivery, Foodpanda, urban consumer, e-commerce business

Learning Outcomes
Through completing this case study, students should obtain a stronger understanding of:

 The relationship between early business practices and the medium and long-term
challenges and opportunities faced by companies
 The challenges start-up companies confront in highly competitive emerging industries
 The importance of having a clear customer service and retention strategy for the long-
term success of new businesses
 The significance of implementing customer service, customer retention, and marketing
strategies in a fast-evolving and highly competitive marketplace

Introduction
The massive and fast-growing €90 billion food delivery market is driven by global
trends, including booming smart-phone usage, younger populations of “digital natives” in
emerging markets, and a growing global middle class (Foodpanda, 2017).Online food delivery
services are the newest addition to this sector. These services in Bangladesh began in mid 2013
with HungryNaki, a local entrepreneurship. Soon thereafter, global organization Foodpanda
joined the competition in late 2013. Following these, three more companies have joined the
market of online food delivery service. Online food demand depends on internet availability and
usage. Internet usage has great impact in flourishing e-commerce, as internet users of

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

Bangladesh grew enormously in the past 5-7 years. In February 2017, the Bangladesh
Telecommunication Regulatory Commission (BTRC) pointed out that approximately 93.87
percent (63.120 million) of internet users use the internet through mobile networks, and 6.13
percent (4.125 million) use broadband internet (WiMAX and ISP+PSTN). This significant
growth in internet usage helps users to place online orders quickly, and also to receive
promotional information instantly.
The continuation of this growth will expand the online food delivery service in
Bangladesh within the next few years, which will benefit market players. Moreover, monetary
value offered to customers is also improving radically as technological advancement reduces
marketing costs, effort, and time. The higher internet usage has resulted in increased usage of
social media websites and mobile applications, such as Facebook, Instagram, and Snapchat.
Similarly, the extreme usage of social media sites results in increased value of online food
delivery services. Compared with other promotional broadcast and print media, a Facebook
promotional rate of USD 7 per day is cheaper. Facebook guarantees that these promotions reach
narrowly defined target markets. Shares, likes, and comments on Facebook spread information
and offers rapidly from one customer to another. In addition, Facebook facilitates the ability of
a firm to select their target market precisely, using tools that guarantee that a firm will receive
hits on their offerings and promotional activities. Currently, Foodpanda has over 2.5 million
followers on its Facebook page. Alongside Foodpanda, there are other local competitors that
provide online food delivery service such as HungryNaki, Justknockbd, Mojadar, and
Foodmart. These companies offer customers an online ordering system from partnered
restaurants with the option of online payment followed by delivery service. As such, online is
the rudimentary platform for customers to place orders through these sites.

Target Demographic Factors: Online Food Delivery


Different demographic factors such as income, lifestyle, and household segmentation
influence the online food delivery market in Bangladesh. Some external factors have been
responsible for present continuing market growth. Primarily, four issues impact this market –
internet usage rate: social media and demography, lack of time, the small family, and the
increasing social trend of women empowerment.

Consumers Income Segmentation


Primarily, established (USD 401 to USD 650 per month) and affluent (more than USD
650) Bangladeshi consumers represent 7 percent of the population with purchasing power of
approximately 11 million. These two particular income segments established and affluent
comprise Bangladesh’s middle and affluent consumers (MAC) population. They have attained
the purchasing power to buy a broad variety of consumer goods and services and have acquired
middle and affluent consumer purchasing traits that offer convenience and luxury in addition to
basic necessities (BCG Perspectives, 2015). On the other hand, current growth in this market is
due to the evolution of women’s empowerment and the incremental growth of the small family.
The increased income of women is a major indicator of rising female employment in the
society. According to the World Fact Book (2016), in Bangladesh, per capita income earned by
women was BDT 1,094 in 2005 which increased to BDT 2,683 in 2014 (growth rate of about
145 percent). Current social trend indicates rising income growth in coming years. Higher
employment and income of women will lead to less available time to prepare food at home, a

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

task often allotted to women culturally. Thus, the usage of online food delivery services offered
by Foodpanda alleviates this task.

Lifestyle Segmentation
Urban consumer lifestyles have evolved over the last decade, with more women
participating in the labor force and people spending more time at the workplace. In this “time
poor, cash rich” society, there will be an increasing tendency towards fewer traditional meals
cooked at home and an increase in demand for convenience foods and pre-prepared meals, with
more meals eaten outside. It is likely that this convenience pattern and on-the-go snacking will
continue, driven by time pressures and busy schedules.Foodpanda has a narrow customer base
demographic, mostly targeting people living in urban areas. Moreover, it is targeted towards
those customers who have sufficient purchasing power to afford food from the renowned
restaurants of the city which can be overly expensive for most residents. Mid-level earners
cannot afford to be a continuous user of Foodpanda due to their financial constraints.
Lack of time creates demand in the food delivery market. The growing working
population and emerging middle class, in addition to increased women in the workforce,
decrease the amount of leisure periods and lead to busier lifestyles. As a result, a large portion
of Bangladeshi consumers have shifted their preferences to food that is easy to prepare or
readymade, or simply food that can be ordered. This can be seen in the recent rise of
departmental stores in the cities as people choose solutions that save time. In Bangladesh,
though ordering food online is not widespread among the people, the concept is thriving and
growing into a trend that is expected to intensify in the future.

Household Segmentation
In Bangladesh, the rate of urbanization is very high, exacerbated by the high population
growth rate and rapid rural-to-urban migration (The Daily Star, 2016). The trend of urban
growth in Bangladesh is about 3.55 percent per annum. The urban population represents 34.3
percent of the total population. Major urban areas as of 2016 include Dhaka, with 17.598
million, Chittagong, with 4.539 million, Khulna, with 1.022 million, and Rajshahi, with
844,000. Likewise, the small family trend is also exaggerating this effect as average family size
has been decreasing for the past several decades. Household Income and Expenditure Survey,
Bangladesh Bureau of Statistics (BBS) shows, in 2014, family size decreased to 4.40 people,
which confirm that large family size is diminishing and people prefer smaller family sizes.

Foodpanda: An Overview
Foodpanda is a global online food ordering company headquartered in Berlin, Germany.
It was established in May, 2012 with the support of Rocket Internet, a German venture capital
company also based in Berlin. Foodpanda was cofounded by Ralf Wenzel and Benjamin Bauer,
the former being the current chief executive officer and the latter being the current chief
marketing officer. The organization is active in 580 cities around the globe, operating in 22
countries (as shown in Table 1). However, the primary customer base of Foodpanda is in Asia
and Eastern Europe as the company focuses on emerging markets. With partnerships with over
26,000 global restaurants, it employs over 2,500 staffs worldwide. The global start-ups were
primarily funded by Rocket Internet followed by other top-tier investors such as Goldman

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

Sachs. However, Foodpanda was acquired by its German competitor, Delivery Hero, in early
December 2016. Headquartered in Berlin, Delivery Hero is regarded as the global leader in
online food ordering and delivery. Through the acquisition, it added 20 more countries in
Eastern Europe, Middle East and North Africa, and Asia to its portfolio, thereby increasing the
company’s global footprint. As a result, Delivery Hero now operates in 47 international markets
and processes over 170 million orders per year. Moreover, the acquisition of Foodpanda further
established Delivery Hero’s global leadership position in the international food delivery
industry.

Table1: Foodpanda Group’s Operations in Different Countries

Year of Partner
Sl. Country Areas of Operation
Expansion Restaurants

Kuala Lumpur, Penang, Petaling Jaya, Sunway


1 Information Not
2012 Malaysia Subang Jaya Puchong, Shah AlamKlang and
Available
Cyberjaya Putrajaya.

Taipei City, New Taipei City, Districts of


2 2012 Taiwan Taichung, Kaohsiung, Xinyi, Da’an, Songshan, More than 800
Zhongshan, and Bangiao.
Bangkok, Pattaya, Chiang Mai, SamutPrakan
3 2012 Thailand More than 1600
and PathumThani.

Budapest, Békéscsaba, Debrecen, Dunaújváros,


Esztergom, Győr, Kaposvár, Kecskemét,
Miskolc, Móvár, Nyíregyháza, Orosháza, Pápa,
4 2013 Hungary More than 3000
Pécs, Sopron, Szeged, Székesfehérvár,
Szentendre, Szolnok, Szombathely, Tata,
Tatabánya, Veszprém and Zalaegerszeg.
2013 Bangladesh Dhaka, Chittagong and Sylhet. More than 650
5

Kingdom of
6 Saudi Jeddah, Riyadh, Dammam, Al Khobar, All restaurants in
2013
Arabia Dhahran, Al Ahsa, Mecca, Madinah, Yanbu KSA
(KSA)

Karachi, Lahore, Islamabad, Rawalpindi,


7 2013 Pakistan Faisalabad, Sialkot, Multan, Hyderabad and More than 2000
Peshawar.

2014 Brunei Belait District and Brunei-Muara District. More than 65


8

2014 Hong Kong Central Hong Kong, Shatin, Causeway Bay, Information Not
9
Tsim Sha Tsui and Kwun Tong. Available

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

Delhi, Bangalore, Chennai, Mumbai, Hyderabad


10 2014 India and over 100 other cities, foodpanda has the More than 15,000
widest reach in India.
2014 Kazakhstan Almaty, Astana, Shymkent and Karaganda. More than 70
11

Sofia, Ruse, Varna, Stara Zagora, Plovdiv,


12 2014 Bulgaria VelikoTarnovo, Burgas, Pleven, Blagoevgrad More than 300
and Dobrich.
Over 1000 partner
Makati, Mandaluyong, Quezon-City, Pasig,
13 2014 Philippines restaurants
Taguig, Manila, and Cebu City.
nationwide

Bucharest, Arad, Brasov, Cluj-Napoca,


2014 Romania Information Not
14 Constanta, Galati, Iasi, Oradea, Pitesti, Ploiesti,
Available
Sibiu and Timisoara.
All restaurants in
15 2015 Qatar Doha
Qatar

Kuwait City, Hawally, Farwaniya, Ahmad, All restaurants in


16 2015 Kuwait
Jahra, Mubarak Al-kabir. Kuwait

United Arab
17 Dubai, Abu Dhabi, Sharjah, Ajman, Al Ain, All restaurants in
2015 Emirates
Fujairah, Ras Al Khaima. UAE
(UAE)

All restaurants in
18 2015 Bahrain All major cities.
Bahrain

All restaurants in
2015 Jordan Amman, Aqaba, Irbid, Madaba, Salt, Zarqa.
19 Jordan

Seeb, Muttrah, Bosher, Muscat, Amerat,


20 All restaurants in
2015 Oman Salalah, Rustaq, Sohar, Barka, Nizwa, Ibra, Sur,
Oman
Buraimi, Mussanah, Ibri.

Cairo, Alexandria, El Mansoura, Port Said,


2015 Egypt More than 500
21 Tanta, Asyut.

2016 Singapore 24 hours delivery in inland wide. More than 1000


22

Source: Various, 2017

As previously stated, Foodpanda has a focus on emerging markets due to the vast
opportunities they present. It has a strong foothold in Southeast Asia in markets such as
Singapore, Hong Kong, Malaysia, Taiwan, Thailand, India, and others. In Bangladesh, the
online food ordering company expanded its operations in 2013 with the initiatives of the
managing director and co-founder of Foodpanda Bangladesh, Ambareen Reza and Zubair B. A.

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

Siddiky respectively. Currently, it operates in three major cities of Bangladesh – Dhaka,


Chittagong, and Sylhet. In the capital city of Dhaka, the company has partnerships with about
524 restaurants, whereas in Chittagong there are about 106 partnered restaurants and in Sylhet
about 45 restaurants. This enables customers to have a wide array of restaurants to choose from.
In Dhaka, Foodpanda covers 45 out of 47 areas under their delivery network, primarily
operating in popular residential and commercial areas of Banani, Gulshan 1, Dhanmondi, and
Uttara.
Online Food Delivery: Business Model
The services offered by Foodpanda can be accessed by customers from 11am to 11pm
via a direct call line, or online platforms of their website or their free mobile application, with
the option of online payment. Moreover, payment can also be made in the form of cash on
delivery upon receiving the ordered items from Foodpanda’s delivery staff. A delivery charge is
placed upon the order which varies from restaurant to restaurant and the distances covered.
Initially, Foodpanda outsourced its delivery service but now the company has its own delivery
support and transportation. With part-time and full time delivery staff equipped with
motorcycles, delivery is possible within 60 to 90 minutes.
Foodpanda’s revenue is mainly generated from the commission they receive from the
partnered restaurants, based on the number of orders. Similarly, the restaurants also receive
various benefits through the partnership. The restaurants are able to increase sales by using
analysis and user-generated recommendations of Foodpanda. Additionally, they are able to
generate awareness without investing a large amount in promotions. Moreover, the participating
restaurants are able to increase their efficiency and utilize their services by partnering with
Foodpanda. Without the direct usage of the space in their physical locations, the restaurants are
able to make profits. At this time, Foodpanda is more concerned about delivering quality service
and earning consumer loyalty, providing different offers to attract new customers and retain
existing ones. The launch of Happy Hour campaign where customers are waived the delivery
charge during 3 pm to 6 pm has been successful in gaining more customers. Moreover, the
service also offers a 10 percent discount to a customer’s next meal if the customer refers a
friend. As a result, Foodpanda as well as the partnered restaurants generate further brand
awareness. With a focus on online marketing and web marketing rather than offline marketing,
Foodpanda attempts to improve their customer service and food ordering technology.

Foodpanda’s Revenue Model


An e-commerce revenue model is a plan for generating revenue for an online business.
There are many similarities between e-commerce revenue models and that of brick-and-mortar
businesses. These models enable businesses to reach customers around the globe and offer
diverse methods of generating sales. They can also be helpful in determining how to structure
the e-commerce business.
For Foodpanda, the major source of income is the revenue earned from partnering
restaurant owners who have to pay commission of 15-20 percent. Commission from
participatory restaurants comprise of over 40 percent of the company’s revenue. Moreover, it
also generates profits through delivery charges. Foodpanda receives 5-10 percent of the total
price when an order is placed through its website. Display ads which are connected with cost-

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

per-thousand (CPM) make up another 10 percent of the company’s profits. The advertisement
fee is generally charged per page, per advertising unit served per page, and per page redirection.

Order Process
The food ordering and delivery process takes place in two phases – food ordering by
customers and food delivery by Foodpanda. The customer places the order online or through a
direct phone call after which Foodpanda processes it.
The Foodpanda online platform has all the tools customers need to search, choose, and
pay – all filtered to the customers’ needs. The online platform includes the company’s own
website and the free Foodpanda mobile application for iOS, Android, and Windows phone
devices. Search is easy with filters based on cuisine types, restaurants, and price range. The
website or mobile application allows customers to select their location to have a list of nearby
restaurants and choose from their menu items. Restaurant index includes the address and
delivery hours of the particular restaurant. Moreover, customers are able to sort through the
index of restaurants based on their popularity, ratings, delivery fee, minimum order value, and
fastest delivery, thereby making food selection easier. Additionally, there are ratings and
reviews on the partner restaurants. The diverse options allow customers to choose according to
their tastes and preferences, thus serving the customer needs. Furthermore, the customers are
able to access promotional offers available online at the time of purchase. Once selection from
the preferred restaurant is completed, customers can place their orders for their desired food
online with the option to make an online payment or pay cash on delivery as well as choose the
delivery point. Likewise, in a direct phone call to Foodpanda, the same process is followed with
the guidance of a customer support service personnel.
Upon receiving the order, Foodpanda begins the delivery process. First, the customer
order details are immediately transmitted to the selected restaurant. Next, a delivery personnel is
dispatched to that restaurant to pick up the order and deliver it to the delivery point. In the case
that the customer chose to pay cash on delivery, the delivery person collects the cash payment
(as shown in Figure 1).

Delivery is
Delivery
made and Immediately
personnel Receives
payment is notifies Foodpanda
collects order details
collected restaurant
ordered food
(if COD)

Selects Chooses
Opens
location and payment
webpage or Waits for
Customer orders food method and
mobile delivery
from nearby delivery
application
restaurant point

Figure 1: Food Order and Delivery Process

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Author’s copy Foodpanda: Changing the Way Bangladeshis Eat Meals

Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

Food Quality and Delivery Service Dilemma


Customers of the online food-delivery platforms have a different set of needs and
expectations from the traditional restaurant customer. As stated earlier, the target customers are
mainly job-oriented and have time constraints. Thus, Foodpanda’s focus is on ensuring delivery
of quality food within the expected time. Hence, it uses airtight containers to maintain the
original food quality with the appropriate temperature. However, due to the obstacles of time
required to prepare the food as well as the busy traffic conditions, the delivery is often delayed.
As such, there are times when the food quality deteriorates and hence, customer complaints
ensue. Though certain circumstances are unavoidable, Foodpanda should concentrate on the
following points to reduce customer complaints and maintain higher customer satisfaction.
First, when a customer initially signs up for a food delivery service, 80 percent of them
stay loyal with their original chosen company, rarely opting to switch to another. Therefore, the
reward goes to the company who can sign up the most customers in the least amount of time. In
this case, Foodpanda has already acquired a significant market share due to its first mover
advantage and thus simply needs to be consistent in customer acquisition. Next, the speed of
delivery is the biggest variable in customer satisfaction, with an average 60 percent of
consumers across markets citing it as a key factor. The optimal wait time is no more than 60
minutes. However, in most cases of Foodpanda, the delivery time is 90 minutes and in some
cases, even longer. As the traffic cannot be controlled, the company ought to implement certain
compensations that customers can receive upon late deliveries. Then, the location from where
the orders are placed should be taken into account. In online food ordering, about 82 percent of
the orders are placed from home, while only 16 percent are placed from the workplace. Finally,
the highest-volume days for the online platforms are Friday and Saturday, when 74 percent of
orders are placed. Therefore, Foodpanda should have more flexibility in its process on these
special days. As a recommendation, the company can implement a timing update system. At
every major development in the food delivery process, customers should receive an online or
phone message to stay updated on the delivery. In this way, Foodpanda can lessen the customer
frustration regarding late deliveries and increase customer satisfaction. Furthermore, it can
implement an order tracking system for customers where the customers can view the location
and estimated delivery time of their orders at every point.

Setbacks and Challenges


Increased well-funded competition and logistics challenges pose a significant threat to
Foodpanda in emerging Asian markets. Similarly, in Bangladesh, the company faces various
complications. Due to the lack of infrastructure such as street signals, paved roads, and clearly
marked street signs, particularly in developing neighborhoods, the Bangladeshi streets
continuously face heavy traffic congestion. As such, it is difficult to deliver food on time
resulting in frustrated customers with complaints. Moreover, there is increased competition
from local players, particularly from HungryNaki which is the local pioneer in the online food
delivery market in Bangladesh. In addition, HungryNaki requires less input of information in
the sign up process, giving it an advantage over Foodpanda. However, Foodpanda has certain
competitive advantages over its competitors. It has vast international experience and has been in
the service industry longer than its competitors. Therefore, it has a stronger brand image and a
more organized android application. Due to its strong brand name and fast mover advantage,

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Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
DOI: http://dx.doi.org/10.4135/9781526444561
__________________________________________________________________________

Foodpanda has an established delivery network and presents customers with more restaurant
offerings than the others.
With the growth of e-commerce, there are various start-up businesses in the emerging
market of Bangladesh. Thus, there are continuous new business ventures creating intense
competition in the e-commerce industries. Likewise, the online food delivery industry also faces
strong competition with global Foodpanda and local players such as HungryNaki, Foodmart,
Mojadar, and Justknockbd. As such, the threat of new entrants is medium to high due to growth
prospects, comparatively low requirement of capital, and lack of structured rules and regulations
in the market. However, established companies can act as a barrier for new entrants as the
former has strong brand image among the customers. On the other hand, the threat of substitutes
is moderate to high as there are several alternatives, including dining in the restaurants, using
catering service companies, visiting neighborhood restaurants, and more. Next, the bargaining
power of buyers is low to moderate. The online food delivery service industry in Bangladesh is
increasing rapidly while the demand is very high among the established and affluent income
customer segments who dominate the market. Consumers in urban areas, especially the younger
generation from single households, are more prone to order food online. The bargaining power
of suppliers is medium to high, as the food delivery service is solely dependent on the
restaurants from where it receives food to deliver to the customers. Even the time of processing
food in the restaurants sometimes generate troubles in the brand image. The industry is highly
competitive since food pricing information, menus from restaurants, and information about
service quality is readily available to customers and they can switch to other options at no
substantial cost.

Moving Ahead
As an emerging markets food delivery specialist, Foodpanda has developed a favorable
position and service offering in some of the world’s largest food delivery markets. Spanning
across 22 countries in Eastern Europe, MENA, and Asia, Foodpanda serves as the market leader
in 17 of them. Through acquisitions and mergers, Foodpanda is able to access an already
established delivery network and domain expertise. Thus, it continuously expands its portfolio
across the globe and consolidates market leadership in those regions. Moreover, the acquisition
by Delivery Hero further expands its global footprint and allows for greater investment
opportunities. The company is expected to benefit from the global capabilities and expertise of
Delivery Hero. With a stronghold in Southeast Asia, Foodpanda aims to further consolidate
market leadership and expand to more emerging markets in the region. In Bangladesh,
Foodpanda has introduced various promotional offers and looks to expand further into more
major cities of the nation in the future. Based on the company’s acquisition and merger history,
it is perhaps not unlikely that Foodpanda may venture into that path in Bangladesh as well.
Looking ahead, Foodpanda aims to focus its investment in technology in order to improve its
delivery operations, restaurant operations, and the overall customer experience.

Discussion Questions
1. What are strengths and weaknesses of Foodpanda in the online food delivery service market
in Bangladesh?

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Case Authors: Jashim Uddin Ahmed and Asma Ahmed, Publisher: SAGE Publications Ltd
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__________________________________________________________________________

2. Discuss the business and revenue model of Foodpanda and how do you think the models can
be made more effective and efficient?
3. Going forward, Foodpanda needs to develop and implement a new, robust customer
retention and customer attraction (marketing) strategy. How would you design such a strategy?
How could the supply chain be optimized within such a strategy? What concrete steps should
Foodpanda be taking and on what time scale?

4. How does Foodpanda maintain its food quality and delivery service process?

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BCG Perspectives (2015, March 10). Bangladesh: The Surging Consumer Market Nobody Saw
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customer-insight-go-to-market-strategy-bangladesh-surging-consumer-
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Bangladesh Telecommunication Regulatory Commission (BTRC) (2017, April 7). Internet


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from https://www.foodpanda.com/

Hirschberg, C., Rajko, A., Schumacher, T. and Wrulich, M. (2016, November). The changing
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