 "Foodpanda to offer services in A'bad, Chennai: Rohit Chadda")
Foodpanda, an on-line food delivery platform, which operates in over 27 countries was brought to India by the entrepreneur duo Rohit Chadda and Amit Kohli. It was launched last year and is now set to expand within the country. Pravda Godbole spoke to Rohit Chadda, MD & Product Head, Asia, to understand their plans.
Tell us about Foodpanda. Where is it headquartered and how is it being funded?
Foodpanda was launched in Delhi in May 2012 by Amit Kohli and I. Since then it has expanded in 9 other cities including Gurgaon, Noida, Mumbai, Bangalore, Chandigarh, Pune, Hyderabad, Ghazibad/Indirapuram, and Faridabad. The company funded by Rocket Internet, Kinnevik partners, and Phenomenon Ventures. Globally our venture is headquartered in in Berlin
We plan to cover all large tier cities in next 3 months. We’ll be adding our services in Kolkata, Ahmedabad, and Chennai in the next 3 months.
How much are you planning to invest for this expansion plan?
While we cant reveal the exact numbers, our biggest investment in next 3 months will be spread across three initiatives--expansion to newer cities, building consumer awareness through marketing efforts and streamlining and IT enabling our last mile order processing to our 2,000+ partner restaurants.
Are you planning an international expansion as well?
Rocket internet has funded Foodpanda in 32 other countries, hence, we already are part of a global venture.
Who are your competitors in India and how do you plan to overtake them?
While we have a few city specific competitors, we don’t have any national competitor. We currently are the largest in India in terms of geographic presence and network. We have been able to build this leadership position through the strength of our partner network, streamlining our backend order processing with the restaurants, and most importantly shaping the consumer market to move away ordering food on phone towards ordering food online.
What is the current size of online food ordering entities and how much of its share do you plan to acquire and by when?
Currently the home delivery market is about 1000 cr, and is expected to grow to somewhere between 4,000-5,000 cr in next 5 years. Online ordering currently has less than 5% share of this market. Our goal is to shape the online food ordering market to capture a 10-15% share of the food ordering market, and in the process maintain our market leadership position.
How many restaurants are listed with you currently and what's your target?
Currently 2,000+ restaurants are registered with us and our target is to increase it to +5,000 restaurants by end of the year.
Are there any novel services you plan to extend towards your customers to capture the market?
Our biggest differentiator is our partner network and well streamlined operations to ensure on time food delivery by our partners. This ensures our consumers trust us as the most convenient and reliable food ordering platform in India. This is where we are far ahead of competitors and a trusted brand for our patrons.
How will you ensure you have the maximum eateries covered under you?
Our focus is not on quantity of partners but the quality of our network. Hence, we don’t look at number of eateries as a goal for us. We want to ensure that the majority of restaurants that our customers would want to order for home delivery should be on our network.
What is your criteria of tying up with a restaurant?
It is a mutually benefiting relationship. Plus we being the aggregator, offer convenience to the customer which is our strength recognised by our partners.
What is your revenue agreement with the restaurants those are tied up with u?
We charge a commission from the restaurants based on the business that we are able to generate for them.
Tell us about Foodpanda. Where is it headquartered and how is it being funded?
Foodpanda was launched in Delhi in May 2012 by Amit Kohli and I. Since then it has expanded in 9 other cities including Gurgaon, Noida, Mumbai, Bangalore, Chandigarh, Pune, Hyderabad, Ghazibad/Indirapuram, and Faridabad. The company funded by Rocket Internet, Kinnevik partners, and Phenomenon Ventures. Globally our venture is headquartered in in Berlin
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How many new geographies do you plan to enter and by when?
We plan to cover all large tier cities in next 3 months. We’ll be adding our services in Kolkata, Ahmedabad, and Chennai in the next 3 months.
How much are you planning to invest for this expansion plan?
While we cant reveal the exact numbers, our biggest investment in next 3 months will be spread across three initiatives--expansion to newer cities, building consumer awareness through marketing efforts and streamlining and IT enabling our last mile order processing to our 2,000+ partner restaurants.
Are you planning an international expansion as well?
Rocket internet has funded Foodpanda in 32 other countries, hence, we already are part of a global venture.
Who are your competitors in India and how do you plan to overtake them?
While we have a few city specific competitors, we don’t have any national competitor. We currently are the largest in India in terms of geographic presence and network. We have been able to build this leadership position through the strength of our partner network, streamlining our backend order processing with the restaurants, and most importantly shaping the consumer market to move away ordering food on phone towards ordering food online.
What is the current size of online food ordering entities and how much of its share do you plan to acquire and by when?
Currently the home delivery market is about 1000 cr, and is expected to grow to somewhere between 4,000-5,000 cr in next 5 years. Online ordering currently has less than 5% share of this market. Our goal is to shape the online food ordering market to capture a 10-15% share of the food ordering market, and in the process maintain our market leadership position.
How many restaurants are listed with you currently and what's your target?
Currently 2,000+ restaurants are registered with us and our target is to increase it to +5,000 restaurants by end of the year.
Are there any novel services you plan to extend towards your customers to capture the market?
Our biggest differentiator is our partner network and well streamlined operations to ensure on time food delivery by our partners. This ensures our consumers trust us as the most convenient and reliable food ordering platform in India. This is where we are far ahead of competitors and a trusted brand for our patrons.
How will you ensure you have the maximum eateries covered under you?
Our focus is not on quantity of partners but the quality of our network. Hence, we don’t look at number of eateries as a goal for us. We want to ensure that the majority of restaurants that our customers would want to order for home delivery should be on our network.
What is your criteria of tying up with a restaurant?
It is a mutually benefiting relationship. Plus we being the aggregator, offer convenience to the customer which is our strength recognised by our partners.
What is your revenue agreement with the restaurants those are tied up with u?
We charge a commission from the restaurants based on the business that we are able to generate for them.