TMCnet News

Foodpanda ramps up Thai venture [Bangkok Post, Thailand :: ]
[August 26, 2014]

Foodpanda ramps up Thai venture [Bangkok Post, Thailand :: ]


(Bangkok Post (Thailand) Via Acquire Media NewsEdge) Aug. 26--Foodpanda, a Berlin-based online food delivery marketplace, is ramping up business in major Thai provinces with the aim of boosting its user base to 5 million by 2016.

Food-related mobile apps are gaining momentum in Thailand ranging from restaurant review apps such as WongNai and OpenSnap to restaurant-booking and discount ones such as Eatigo and food delivery services including Food by Phone and Go Tasty.



Alexander Felde, co-founder and managing director of Foodpanda Thailand, said his company had seen a sharp increase in online food delivery services here in the past two years, boosted by the country's fast adoption of the mobile internet and changing consumer lifestyles.

"We're on the verge of expanding into large cities like Hua Hin, Pattaya and Chiang Mai," he said, adding that his company would significantly increase the number of local staff and delivery teams this year.


"We aim to reach 5 million users by 2016 from the current 1.5 million," said Mr Felde.

He said Thailand still had a low internet penetration rate of only 35%.

The proliferation of smartphones and greater wireless network coverage are driving demand for food delivery services via mobiles.

Mr Felde said surveys had revealed half of smartphone users in Thailand were willing to pay for their products and services via mobile devices.

Foodpanda sees its business growing by 10-15% each week, he said.

Half the orders come from mobile apps, 45% from personal computers and 5% from mobiles.

Globally, the company received US$60 million from a group of investors to help it expand internationally.

Foodpanda has raised more than $100 million in funds in the past two years.

Mr Felde said his company planned to increase the number of restaurants here by 50% to 600 this year.

The company expects to reduce its average food delivery time to 45 minutes from the present one hour. Average spending per order is 750 baht.

Foodpanda provides an ordering system and delivery services to restaurants that do not have or want to invest in their own systems.

It charges a 60-baht delivery fee in Bangkok plus an additional 5% service charge, Mr Felde said.

Customers can download the company's delivery information via mobiles supported by the Android, iOS, Windows, Nokia X and Asha operating systems.

Globally, Mr Felde said Foodpanda planned to have at least 3 million downloads by year-end, up from 2.5 million now.

Rungrudee Suwannake, co-founder of Food by Phone, said her company last year launched a mobile app enabling users to place orders using smartphones instead of making a call through a centre service.

The company expects its Bangkok restaurants to surpass 100 this year, she said.

Related search: Information technology, telecommunications ___ (c)2014 the Bangkok Post (Bangkok, Thailand) Visit the Bangkok Post (Bangkok, Thailand) at www.bangkokpost.com Distributed by MCT Information Services

[ Back To TMCnet.com's Homepage ]