In a market gripped by concerns over rising interest rates and soaring inflation, investors are staying clear of food delivery companies. Turned off by the steep losses and unrelenting efforts to expand, the market isn’t attracting investment as it was just a couple of years ago. HungryPanda
Despite what appears to be a growing appetite for convenience, most listed companies in the food delivery industry are currently facing financial issues and stock losses. HungryPanda
Most of the mainstream food delivery companies have not been able to demonstrate strong financial performance due to their huge profit losses. While competition is as heated as ever, with the introduction of instant grocery platforms, food delivery companies are narrowing their business operations.
So what makes HungryPanda unique?
Not all food delivery companies have the same issue. Compared to others in the industry, HungryPanda is quite unique. As the Asian food delivery leader worldwide, HungryPanda has already achieved a profitable status in the UK two years ago.
The company has used its successful business model in many other countries, which is quite rare in this market. When analyzing the reason behind this growth, it becomes evident how HungryPanda’s different strategies keep them ahead.
The team structure of HungryPanda is unique; teams work closely together, however, every unit can also operate independently – hence each unit is duplicable and movable. Such a structure design allows for flexibility, as well as assurance in operations.
The rapid launching time and the experienced team help HungryPanda to save on costs. Usually, when launching a business in a new city, a food delivery platform needs to prepare for a ‘price war’ to attract customers.
But that is not the operational model of HungryPanda.
Laser-focused target audience
Compared to its competitors’ high commission fees of up to 30%, HungryPanda charges merchants a lower fee of 15-20% to gain profits with merchants together. With a better profit model, merchants are more motivated and passionate to provide better food and marketing promotions – helping themselves and HungryPanda to receive more orders.
HungryPanda targets a niche market, which is overseas Chinese ex-pats. With a precise audience, HungryPanda can easily understand what customers need. The laser-focused target market reduces costs on research and production.
Expanding into new international locations and platforms
In the US, HungryPanda started its operation in 2019 in New York and then rapidly expanded to more than 30 cities. There was a 6-time increase in total orders following the new market expansion.
In Australia, HungryPanda started its operation in 2019 and now operates in six major cities. There has been a 3-time increase of total orders, in contrast to the orders for 2019.
HungryPanda now is expanding with more businesses including PandaFresh, which is the new service that provides fresh food and groceries delivery with Asian exclusivity.
Different from other platforms, PandaFresh is setting up self-managed warehouses to improve the fulfillment capability by precisely controlling the tracking, packing, sorting, shuffling, and delivering of products.
PandaFresh has introduced the grocery distribution center to serve as the hub for receiving and shipping the groceries to prepare online orders for customers.
HungryPanda attracts the biggest investments in the industry
HungryPanda’s optimized operational model creates a greater control for stock and delivery management; employees benefit from the productivity growth and have more time to focus on business optimization.
Last year, HungryPanda announced a D round investment of 130 million US dollars, which is also the biggest investment amount in the industry. After the investment, HungryPanda soon reached acquisitions of EASI (Australian Asian food platform) and BUY@HOME (New Zealand’s Asian lifestyle platform) to enhance its presence and improve its business models.