How FoodPanda/Swiggy Make Money? FoodPanda Business Model || H.P.S.F.B.F.

Food Delivering Network Business Model

FoodPanda is a Food Delivery network/System, delivers food to home or office when order, have their app and Site both available.

History: Foodpanda was founded in 2012 by four people Ralf Wenzel Benjamin Bauer Felix Plog Rohit Chadda.

Headquarter in Berlin, Germany. They acquire the Eat Oye in the November 2014. After that, the FoodPanda Group sold it delivery Business in Russia. After in December 2016, FoodPanda was acquired by Delivery Hero.

 

business model

In India, all the foodpanda share is in Ola’s pocket. All business goes to Ola itself.

What problem they are solving:

Nowadays everyone wants to earn good money and get financially free, get retired in the 30s and to travel the world. And for all this, you need to solve the problem.

Solve the problem that 1 Billion people, By this you can definitely earn a million of your own.

Naveen Jain

 

And From the last decades, many are succeeding in doing this. Which they coined as a Startup.

Every startup is trying to solve the problem.

business model business model

Here all the FDN’s are solving the two major problems.

For Customer: For anyone new or even a familiar person in town who don’t know about the food available in their nearby hotel or want to explore a new hotel and if he/she don’t know about the rate of the food. To know this, we have to go and search for every hotel by actually visiting it.

For Hotel: Here also both for new and old hotels want to increase their sales by showing the items they are offering. It proves the best place from marketing our hotel for the new restaurant.

Also, If Hotel opens its own delivery chain then it burns their cash in maintenance the bike and in the delivery boy for that and at last no hope of coming he sales which cope up the situation of cash flow.

Funding: Total Raised $318 Millon{venture capital}

  1. 20 Million from Phenomen Ventures, Investment AB Kinnevik and Rocket Internet in early 2013.
  2. Same year September iMENA Holding added 8 Million to their pocket.
  3. In Feb 2014 another 20 Million from Phenomen Ventures and groups.
  4. Another 60 Million from Financing the groups of an investor.
  5. 110 Million from Rocket Internet and groups in March 2015
  6. 100 Million from Goldman Sachs and Groups added.

Business model(I have explained this on Quora Too.):

Coming to the Business Model, these Company’s has very Simple to understand and seems to be the best and the sole source from which this private company like this, can earn money.

All the Food Delivery Sites like foodPanda, Swiggy, Uber Eat have a common and easy to understand Business Model, to know just visit their Site.

Margin/ Commision: All the Hotels and Restaurant have a tied up with all the food network. They give the app discount and FDN’s Sold this at the same price of somewhat low price and earn.

Or

This Site takes commission from the Hotels up to 10-15 % means if the food of 100Rs gets Sold from their app then Hotels give 15 Rs to the FDN’s Site.

business model

Delivery Charge: The FDN’s generally charge you if the food is not above 200-300 Rs. Consequently, this is also a place from where money is coming. Swiggy is not charging this but now they also started taking the minimum order.

Advertising (Higher Search Ranking): If ou searches for any food then some food comes first tagging Promoted. Hence, this hotel has paid the site to shows their hotel on the top.

Suppose you have started a new hotel and want to promote your hotel and increase the sells and to do marketing of their hotel This FDN’s are the Key.

As you can target the audience in your area and the main thing here is that you are targeting the real genuine buyer. They are all foodies, they love food and so they will mostly going to buy, and if they love your food, they also spread the mouth of the word to other and do marketing for you.

Future: The future seems good but as new startups are coming and giving a discount, and we Indians do not stick to anyone as the reason it is difficult for every food delivery network to survive in the market. Here the quote “Survival of fittest” fits perfectly.

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