Feature Story – Foodpanda Brunei

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Foodpanda Team (Photo courtesy of Foodpanda Brunei)

When we first met with the management of foodpanda in Brunei I was blown away by the innovative approach that not only serves their bottom line, but by how it positively impacts the community at large. Their business model reminds me of the famous Blue Ocean Strategy, which is a revolutionary management concept about making the competitors irrelevant by creating a new set of rules to play by.

In Brunei, foodpanda does not have any competition. Even though they make money by selling you food through their delivery service, they are in no way a threat to the restaurants. Rather, their operation only thrives when the restaurants do well.

Now two years in the market, foodpanda is currently helping over 88 restaurants across the capital city to deliver food to customers’ homes through its website and mobile phone app. Their partners range from major players such as Burger King, Excapade and Prego Mauri to independent restaurants such as Chatter Box Kopitiam and Nyonya Restaurant. The range of food you can find on their site is deliciously diverse and includes Arabic, Chinese, Indian, Japanese, Italian, Malay and the list goes on.

In Brunei, foodpanda caters to the technologically savvy customers made up of mainly the office executives who order food delivery during lunch hours; and younger, modern families who do not have the time to dine out and don’t mind paying a little extra for this convenience. Globally, the company is setting their eyes on the Euro 90Billion Takeaway Food Delivery Market driven by the booming smart phone generation, digital natives and a growing global middle class.

Nabil Ibrahim, Sales & Marketing Manager

How does foodpanda make money?

A delivery fee is charged to the customer depending on the basket size of the order made. A higher basket size could lead to no delivery fee for certain restaurants. Participating restaurants are charged a percentage of payment to be part of foodpanda’s online food delivery services. So far, this model has worked well in this market as they receive over 2000 online orders to feed the hungry customers at their homes each month.

This innovative global establishment has not only created a good revenue stream for them in a small market such as Brunei, it is also responsible for creating employment for the local community with approximately 30 staff members made up of both full time and part time workers.

Most importantly, foodpanda has also helped restaurants to reach new markets which they may not otherwise have had the means or resources to access. According to Nabil Ibrahim, the sales & Marketing Manager, “We have even helped a business that was going to close down and turned them around by adding the element of food delivery to their equation.”

A reason for foodpanda’s success in Brunei is because many restaurants see it as an opportunity to take advantage of the new innovations in technology, without having to be an IT expert or laying down big investments for acquiring the infrastructure. What’s more, it operates on a performance-based model, where restaurants are only charged when there is an order. In the end, everybody wins.

People often ask: what would make a business successful? Very simply put, it is very difficult for a business to fail if it provides real value to the community by solving its problems. foodpanda has delivered in this area on so many different levels and its business will continue to thrive by creating a blue ocean that everyone can swim in.

About Foodpanda: 

What is foodpanda?
Foodpanda is the global online food ordering marketplace where people can discover, choose and order from the widest gastronomic range available around the neighbor.

Founded in May 2012 with offices in Berlin, Delhi, Hong Kong, Saudi Arabia, Singapore and 20 other metropoles.

• Highly funded with over USD 310M and backed by internationally renowned investors
• Operating in 24 countries
• Active in over 580 cities around the world
• Market leader in 23 countries
• More than 3,000 employees worldwide, over 180 in Berlin
• Partners with more than 45,000 restaurants

How does foodpanda work?
They make the online ordering process remarkably simple by having food delivered in 4 simple steps.


This article was published in the Jan-Feb 2017 issue of Inspire Magazine. Download it here!