PROJECT REPORT

ON
“A STUDY ON BUSINESS MODEL OF FOOD PANDA”

Submitted in Partial Fulfillment for the Award of the

Degree of Bachelor of Business Administration (2022-2025)

Under the Supervision of: MS. USHA NAIR Submitted By:

KANAK VERMA
Designation: PROJECT SUPERVISOR Enrollment No.
07514701722

Maharaja Agrasen Institute of Management Studies Affiliated to

Guru Gobind Singh Indraprastha University, Delhi
PSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086, India
 Student Declaration
This is to certify that I, KANAK VERMA have completed the Project Report titled

“A STUDY ON BUSINESS MODEL OF FOOD PANDA” under the supervision of

MS. USHA NAIR, CLASS COORDINATOR toward partial fulfillment of the

requirement for the award of the Degree of Bachelor of Business Administration at

Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece

of work and I have not submitted it earlier elsewhere.

(Signature)

Name of the Student: Kanak verma

University Enrolment no: 07514701722
Program: Bachelor of business administration
Batch: 2022-2025

COUNTERSIGNED BY:

(Signature)
Name of Internal Faculty Supervisor: Ms. Usha nair
Designation: Class coordinator
 Acknowledgement
Guidance, inspiration and motivation have always played a key role in the success
of any venture. I would like to pay my sincere regards to all those who guided me
in my project work.

I would like to avail this opportunity to pay my sincere gratitude and regards to
MS. RAJNI DHINGRA, Director and MR. MANOJ VERMA, HOD, Business
Administration, Maharaja Agrasen Institute of Management Studies for providing
me such a wonderful opportunity to widen the horizons of my knowledge. I would
also like to express my heartfelt thanks to my Project Supervisor MS. USHA
NAIR, class coordinator for giving his/her support, guidance and encouragement
throughout the project work.

Last but not the least I would like to thank my parents, family and friends who have
directly or indirectly contributed in making this project a success.

Name of the Student: Kanak verma

University Enrolment No: 07514701722

Program & Section: Bachelor of business administration

[4B]

Batch: 2022-2025
 CONTENT

S.NO. CHAPTER NAME PAGE NO.

1. Acknowledgement 2
2. Students Undertaking 3
3. Certificate 4
4. List Of Tables And Graphs Of Analysis 6
5. Chapter I. Introduction To The Topic 7 - 14

6. Chapter II. Objectives Of The Study 15 - 16

7. Chapter III. Literature Review 17 - 23

8. Chapter IV. Company Profile 24 - 40

9. Chapter V. Research Methodology 41 - 44

10. Chapter VI. Limitations Of The Study 45 - 47

11. Chapter VII. Analysis And Findings: 48 - 65

▪ Classification Of Data
12. Chapter VIII. Conclusion And Suggestions 66 - 67

13. Chapter IX. Bibliography 68 - 70

5
 LIST OF TABLES AND GRAPHS OF ANALYSIS

S.NO. CLASSSIFICATION OF DATA PAGE NO.

( Table Title )
1. Table and graph no. 1 49
Classification on the basis of gender
2. Table and graph no. 2 50
Classification on the basis of marital status
3. Table and graph no. 3 51
Classification on the basis of age group
4. Table and graph no. 4
Table and graph showing respondents educational 52
qualification
5. Table and graph no. 5 53
Classification on the basis of respondents occupation
6. Table and graph no. 6
Table and graph showing monthly income of the 54
respondents
7. Table and graph no. 7
Table and graph shows on the basis respondents 55
order food online
8. Table and graph no. 8
Table and graph shows respondents prefer online 56
food delivery
9. Table and graph no. 9
Table and graph shows respondents come to know 57
about order food online
10. Table and graph no. 10
Table and graph shows how often do respondents 58
order food online
11. Table and graph no. 11
Table and graph shows respondents do prefer to order 59
food online
12. Table and graph no. 12
Table and graph shows respondents typically order 60
meal food online
13. Table and graph no. 13
Table and graph shows respondents like to rate 61
quality service offered by foodpanda
14. Table and graph no. 14
Table and graph shows respondents say about the 62
cost charging for foodpanda service
15. Table and graph no. 15
Table and graph shows respondents most important 63
factors in choosing foodpanda

6
 CHAPTER- I
INTRODUCTION TO THE TOPIC

7
 WHAT IS BUSINESS MODEL?

Fig 1.1

A business model is a framework for how a company will create value. Ultimately, it
distills the potential of a business down to its essence. It answers fundamental
questions about the problem you are going to solve, how you will solve it, and the
growth opportunity within a given market.

Creating a business model is essential, whether you are starting a new venture,
expanding into a new market, or changing your go-to-market strategy. You can use a
business model to capture fundamental assumptions and decisions about the
opportunity in one place. There are many types of business models. Each one varies
considerably based on the type of organization and offering.

For example, a manufacturing company will have a very different model than an
advertising agency. Even within a specific industry, business models vary. Here are
a few common business models used by technology companies:

• Subscription
• Transactional
• Premium
• Affiliate
• Retail sales

Most businesses end up using a combination of business models to reach their

customers and grow over time.

WHY IS A BUSINESS MODEL IMPORTANT?

You need a clear path to build something meaningful. The process of building a
business model establishes a plan for how you will realize your vision. It lays out the
strategy behind a new undertaking or investment and provides a framework for
tracking progress.

8
Creating a business model requires deep thought and analysis. Company and
product builders must think from the outside in, focusing on market needs and what
matters most to customers. Once built, sharing your business model across the
organization encourages alignment. This keeps everyone accountable for what they
are working on and why, as well as guiding investments of time and resources.

WHAT ARE THE COMPONENTS OF BUSINESS MODEL?

A business model should answer important questions about your business and set
out a strong vision for the business. The key components of a business model
should include relating to your target customers, the market, organization strengths
and challenges, essential elements of the product, and how it will be sold.
Establishing this foundation guides the next planning tool your product roadmap.

Here is a list of essential components included in a business model:

• VISION
• KEY OBJECTIVES
• CUSTOMER TARGETS AND CHALLENGES
• SOLUTION
• VALUE
• PRICING
• MESSAGING
• GO-TO-MARKET
• INVESTMENT REQUIRED
• GROWTH OPPORTUNITY

BUSINESS MODEL EXAMPLES

With this definition in mind, you might now be wondering: What is a business model
example?

One popular example of a business model is the subscription model — in which

businesses charge a subscription fee (monthly, annually, etc.) for customers to
access a service. Of course, this type of business model can be adjusted and
customized for each individual business, but using Netflix as an example, let's break
it down based on the four points we outlined earlier :

What kind of product or service a company will sell: Netflix sells an online streaming
service.

9
 • How it intends to market that product or service: Netflix uses a
multichannel marketing strategy and markets its service through social media,
email marketing, advertising and even simple word-of-mouth marketing.
• What kind of expenses it will face: As a Fortune 500 company, Netflix's
expenses are extensive, but perhaps notably, its expenses will include the
costs to produce or acquire the content on its platform, as well as the
technology and staff needed to maintain the service.
• How it expects to turn a profit: Even though Netflix is such a large
enterprise, (and has a few different ways of making money) when it comes
down to it, it expects to earn a profit from its subscription sales.
• From this example, you can see how the first three points contribute and
circle back to Netflix's business model as a subscription service.

HOW INVESTORS ANALYZE BUSINESS MODELS

Business models offer insights into a company's long-term profit potential. Investors
tend to focus on several areas before choosing companies to add to their portfolios:
This is especially true of market size, product demand, scalability, and the ability to
add new channels.

These components have the most significant potential to impact net income, which is
the accurate way investors measure a company's wealth-generating potential. If net
income increases, the company is doing well and can be a good investment.

• Market Size and Product Demand

Business models include insights into the marketplace, like customer demand,
potential for reaching new customers, and expansion opportunities. These insights
help investors and analysts understand whether a company has long-term profit
potential.

For decades, collectors have displayed, shown, and competed with their figures for
prizes. By expanding their product line beyond collectibles, the company has
increased its customer base to both the collector market and parents of small
children.

SCALABILITY :

Scalability refers to a company's ability to expand or grow with the same amount of
resources. If a company is limited by geography, customer demand, service delivery,
or product availability, its potential for growth and profitability is also limited unless
the business model shifts.

Conversely, Uber can scale exponentially because its product is its app (rather than
providing drivers and vehicles). As long as people need rides and drivers require a
flexible income source, Uber can continually scale to meet demand.
10
 OVERVIEW OF FOOD DELIVERING INDUSTRY

Fig 1.2

Food delivery has now become an integral part of the urban lifestyle. And that’s why
almost the entire day those delivery agents can be seen riding their bikes, carrying
the orders, sporting their company T-shirt and a cap. It is observed that one-third of
Americans order food online at least twice a week.

Food delivery service is somewhat similar to courier service in which the ordered
food is delivered from the restaurant to the customer either by the restaurant’s staff
or by delivery agents of a food ordering company. Orders can be placed over a call,
mobile apps and through web-portals of a restaurant directly, or through restaurant
aggregator apps.

Websites like Swiggy, Foodpanda, Dominospizza become popular and it has online
food order system. After ordering the food the delivery boy delivers food items to the
customer place. Food delivery service might also include delivering groceries from
the supermarket.

Technological interventions have further made food delivery services prompt and
quick, keeping customers happy and loyal.Food delivery businesses follow several
models, depending on the objective it varies from company to company. But the
priority is to deliver freshly prepared food faster and safer.

11
 TYPES OF FOOD DELIVERY SERVICES
With a surge in demand, food delivery services globally have now been under the
spotlight. From winning customers to understanding them, a paradigm shift in the
approach of food delivery services is also underway. Understanding those four
distinct types of food delivery services hence is essential.

1) Restaurant Prepared Food Delivery

This is a kind of on-demand delivery service that has disrupted the traditional
market. Social media mentions of such delivery services have skyrocketed in
recent times, more so due to COVID19 outbreak.

Three basic components of a meal experience – ordering, cooking and

delivering are managed. While few handles all the three basic operations,
most are into accepting orders, passing it on to partner restaurants and then
delivering it to the customers.

Companies like JustEat, GrubHub, FoodPanda have partnered with

restaurants and then deliver the food to the customers. Whereas fast food
chains like PizzaHut, Domino’s McD do it all by themselves or even engage
third-party apps to receive orders and get it delivered.

2) Meal Kits Delivery

Companies like Blue Apron, Freshly are catering to this segment. Expected to
reach USD 20 billion by 2027 as per Grand View Research, this is mainly
opted by busy and overworked families. Meal kit offerings have two options –
heat and eat, cook and eat. Fresh, healthy, relatable meals can only resonate
with customers who mostly face slot delivery issues currently.

3) Grocery Delivery
Grocery delivery business has seen a sudden spike during the pandemic and
will continue with its growth in the next couple of years. Mostly the business
starts with either a web portal or app and delivers groceries to the customers
from a warehouse or offline store where the items are stocked.

At times, an online grocery marketplace is created by joining hands with few

local grocery producers/retailers who would eventually use the platform to sell
their products on the marketplace. Companies like Peapod and Instacart are
mainly leading the segment.

12
 4) Veggie Box Delivery
Vegetable box subscriptions are on the rise nowadays. These can range from
Community-Shared Agriculture boxes (CSA boxes) to corporate equivalent
which are branded boxes of vegetables and fruits. During the lockdown
months, over 500 British vegetable box providers, with waiting lists ranging
from 160 to 6,700 customers, delivered 3.5 million boxes of fresh produce to
homes, that’s more than double their usual sales. Popular UK vegetable box
suppliers, such as Farmdrop and Riverford, had to introduce online queues
due to surged demands. The USA based Farmers Box and Misfits Market
also registered large spikes in their sales of veg boxes during the pandemic
outbreak.

WHY IS A FOOD DELIVERY SERVICE IMPORTANT?

Current lifestyle and pace of life have made it a bit difficult for double-income
households to cook a proper meal. Also, the lack of time due to a hectic office
schedule further makes it impossible to go out for dinner and lunch. And in this kind
of scenario only food delivery services can be a true saviour. During the lockdown, it
has been a boon to many to get food delivered at their doorsteps. Some of the
advantages of food delivery service are listed below.

1) Wider Variety
Food delivery service gives a plethora of options to choose from at the
comfort of your home. You can choose your favourite cuisine from a wide
range of restaurants. Be it an appetizer, main course or desserts, be it
Chinese or Italian or Indian, you get to choose them easily. You can also
compare the prices and popularity rating of the restaurants before ordering. It
is easy to order and the transparency in the transaction also acts
advantageously.

2) Cost efficiency for Customers

It is cost-effective to order food, the reason is that you cut on your travelling
expense and time. Moreover, you can avail the deals and discounts that
further reduce the expenses. As compared to dining-out, calling in for food at
home is more affordable.

3) Easily Accessible
Just a smartphone with Android or iOS is needed that supports the app. Rest
all is just a click away. Tutorial videos are also available to enable you to get a
hang of things.

13
 4) Varied Modes of Payment
Making a payment is quite convenient while placing an order for food delivery
services. You get a choice of paying either by cards, net-banking, digital
wallets, or even by COD (cash on delivery). The payment gateways are
secured with valid certification and hence is safe to use.

Fig 1.3

WHY ON-DEMAND APPS ARE ON THE RAMPAGE?

With the popularity of Uber business models with on demand app ideas got
validation and trend started booming thereafter. In practice, the idea is great. It
creates more jobs and allows for people who are busy to get food delivered when
they don’t have time to go out.

So, in essence, you sacrifice quality for convenience. You spend more money for a
less enjoyable experience. And yet the popularity of these apps grows more and
more by the day.

SCOPE OF ON DEMAND FOOD DELIVERY APPS

Considering the recent investment way coming out from the venture capital firms and
also the statistics mentioned above regarding on-demand economy, it gives a
positive approach that on-demand economy is here to stay. When you need it the
most, the on-demand app economy allows you to use it to order anything at the time.

Food delivery, ride to a place, package delivery helping some other people to build
book shelves, booking a automatic getaway, today’s foremost application technology
and app economy has got covered many things that has made consumer’s life easy,
where they can rely on powerful on-demand apps for finishing their daily chores as
well as special needs.

On demand by simply tapping on their smart phones. The on-demand economy has
so far proving to be good for consumers, service providers including technology
platforms.

14
 CHAPTER- II
OBJECTIVES OF THE STUDY

15
 OBJECTIVES OF THE STUDY
• To identify the business strategy behind Foodpanda.
• To study the impact of introduction of food delivering industry.
• To obtain a general understanding of business model.
• Determining the SWOT of Foodpanda.
• A business plan is a vehicle for describing the goals of the business and how
the goals can be reached over the coming years :
1) Determine whether the business is viable.
2) Raise capital for the business.
3) Project sales, expenses, and cash flows for the business.
4) Explain to employees their responsibilities as well as company
expectations.
5) Improve and assess company performance.
6) Plan for a new product/ service development.
• Entrepreneurs can also use a business plan to establish goals and document
milestones along the business path to success.

Fig 2.1 Fig 2.2

16
 CHAPTER- III
LITERATURE REVIEW

17
 WHAT IS FOODPANDA?

Foodpanda is a online food ordering mobile app that connects users with thousands
of local food point. users can browse through various menus and place orders for
home delivery or take-away at the best price. you can order from a wide variety of
delicious food online With just a few clicks. foodpanda delivering you with food point
menus, customer reviews and more for over 5000 restaurants spread over 45 cities.

Foodpanda was launched in Singapore in March 2012 and expanded to 16 countries

by the end of the year. It then expanded to seven more countries and had its
presence in 23 countries by February 2013. The Foodpanda brand, currently used in
Asia, Bulgaria and Romania, was acquired by Delivery Hero in December 2016.

With the growing popularity of Uber business models, an on-demand app idea got
validation and became trendy after that. Foodpanda is one such on-demand food
ordering and delivery platform, which has gained massive popularity in the market.
It’s an advanced system that delivers food to customers’ doors from nearby
restaurants. Now, most businesses opt for an on-demand app solution helping them
cater to the growing needs of the market.

Food apps in the on-demand economy have a simple psychological appeal; they
promise to save the end user’s time and efforts. On-demand apps like Foodpanda
promise to save our time and efforts to a great extent. The on-demand platform
delivers convenience just as a simple attribute; it provides comfort across customer
touch-point. It is an on-demand food ordering and delivery platform that connects
users with local restaurants.

Easy-to-use platforms enable users to browse various menus and place orders to
deliver the best price. Food lovers can order a wide variety of mouth-watering and
delicious food online with few clicks on their smart devices.

18
 HISTORY
In 2012, Lukas Nagel and Rico Wyder established Foodpanda in Singapore and later
expanded in Malaysia, Indonesia, Thailand. Foodpanda was launched in 2013 in
Romania and in 2014 expanded in Hungary and Balkans. In 2014, Foodpanda
expanded its service into the Philippines. Shortly after, global expansion of the
Foodpanda business was led by Ralf Wenzel, Felix Plog and Ben Bauer. From 2019
to 2020, foodpanda expanded in Myanmar, Cambodia and Laos. Foodpanda was
launched in Japan, in September 2020 covering 6 cities including Kobe, Yokohama,
Nagoya, Sapporo, Fukuoka and Hiroshima and later Osaka and Kyoto.

• South Asia

In February 2014, Foodpanda acquired its main rival in Pakistan, Eat Oye. It
afterwards went through three management changes until 2019. In early 2015, the
company made an all-stock purchase of TastyKhana.in, and the portal Just Eat
India. Cofounder Rohit Chadda stepped down from roles at the company in the
middle of 2015.

In the end of 2015, the company laid off around 300 employees in India. By 2016,
none of the original managing directors or cofounders were present with the
company. Also at that time, there was a news expose alleging malpractice at
foodpanda India, including nonpayments to restaurants, and fake listings. Earlier that
July, it was also revealed that the Singapore police raided their offices in the country
for signs of malpractice concerning foreign interns.

The company was based in Gurgaon at the time and active in 200 cities. By 2016,
Rocket India was seeking a buyer for the company, listing relatively low prices such
as $10 to $15 million. Delivery Hero announced in December 2020 that it would take
control of South Korea's biggest food delivery app, Woowa Brothers Corp., at a $4
billion valuation.

In 2013, Foodpanda was launched in Bangladesh. With more than 20,000

employees operating in their company, Foodpanda is currently the largest food
delivery service in Bangladesh.

• Russia

In November 2016 the company sold its Delivery Club business in Russia to mail.ru
for $100 million. In December 2016, the Foodpanda group was acquired by the
German competitor Delivery Hero. Also that year in December 2016, Foodpanda's
once largest investor Rocket Internet sold Foodpanda to Delivery Hero.

Foodpanda's business in India was acquired by Ola for all share deal on 11
December 2017, for the price of $40-$50 million. Ola said it would invest around
$200 million additional funds in Foodpanda.

19
On November 1, 2017, Foodpanda re-branded from Orange to Pink with updated
logo across all the countries. The rebrand follows its acquisition by tech giant
Delivery Hero in December 2016, changing its brand color from orange to pink.

The company began offering discounts to increase usage, and at its peak, in August
2018 it had around 200,000 daily orders. That dropped to around 5,000 daily orders
by the middle of 2019. Ola suspended Foodpanda India's food delivery business in
the middle of 2019 and fired most of its 1,500 "food delivery executives."

The Foodpanda brand was said to continue in-house brands or "cloud kitchens." The
cloud kitchen concept had started for the company when it had acquired the
company Holachef in October 2018. In 2019, however, it only had three private label
brands under its cloud kitchen business, among them FLRT and Great Khichd
experiment.

Foodpanda is a food delivery marketplace that operates in more than 50 countries. It

is active in Bulgaria, Asia Pacific, and Romania; the platform is owned by a Berlin-
based company named as Delivery Hero SE and headquartered in Berlin, Germany.
The platform enables food lovers to order their favorite and mouth-watering dishes
from local restaurants.

Foodpanda has partnered with more than 115,000 restaurants in about 246 cities. It
has worked with 80,000 delivery riders; Delivery Hero acquired the company in
December 2016. While in India, Foodpanda’s business was acquired by cab
aggregator Ola on 29 2017 for an undisclosed amount of $40-$50 million.

The company sold its Delivery Club business in 2016 in Russia to mail.ru for $100
million. In the same Foodpanda’s largest investor, Rocket Internet, sold Foodpanda
to German competitor Delivery Hero.

In 2017, Foodpanda rebranded from Orange to Pink with an updated logo; tech giant
Delivery Hero followed the rebranding. The company started offering unique
discounts and offers to increase platform traffic; in 2018, it completed around 3
Lakhs daily orders. This number increased to 5,000 daily orders by 2019. Ola
suspended the Foodpanda food delivery business in 2019 and fired more than 1,500
“food delivery executives.”

The Foodpanda brand continues in-house brands, also known as “cloud kitchens.”
The concept was adopted by the company when it acquired Holachef in 2018.
However, in 2019 the company will have only three private label brands under its
cloud kitchen business, including the Great Khichd experiment and FLRT.

20
 SUCCESS HISTORY OF FOODPANDA
Foodpanda is a food delivery marketplace that operates in more than 50 countries. It
is active in Bulgaria, Asia Pacific, and Romania; the platform is owned by a Berlin-
based company named as Delivery Hero SE and headquartered in Berlin, Germany.
The platform enables food lovers to order their favorite and mouth-watering dishes
from local restaurants.

Foodpanda has partnered with more than 115,000 restaurants in about 246 cities. It
has worked with 80,000 delivery riders; Delivery Hero acquired the company in
December 2016. While in India, Foodpanda’s business was acquired by cab
aggregator Ola on 29 2017 for an undisclosed amount of $40-$50 million.

The company sold its Delivery Club business in 2016 in Russia to mail.ru for $100
million. In the same Foodpanda’s largest investor, Rocket Internet, sold Foodpanda
to German competitor Delivery Hero. In 2017, Foodpanda rebranded from Orange to
Pink with an updated logo; tech giant Delivery Hero followed the rebranding.

The company started offering unique discounts and offers to increase platform traffic;
in 2018, it completed around 3 Lakhs daily orders. This number increased to 5,000
daily orders by 2019.

Ola suspended the Foodpanda food delivery business in 2019 and fired more than
1,500 “food delivery executives.” The Foodpanda brand continues in-house brands,
also known as “cloud kitchens.” The concept was adopted by the company when it
acquired Holachef in 2018.

However, in 2019 the company will have only three private label brands under its
cloud kitchen business, including the Great Khichd experiment and FLRT.

FUNDING HISTORY OF FOODPANDA

Foodpanda raised a total of $318 million in venture capital; the company raised $20
million in initial funding from Investment Rocket Internet, AB Kinnevik, and
Phenomena Ventures in 2013. iMENA Holdings invested around $8 Million in the
same year; in 2014, the company raised $20 million from investors and Phenomena
Ventures.

Later Foodpanda announced that it had raised $60 million in financing from different
groups of investors. In 2015, Foodpanda announced it had raised more than $110
million from Rocket Internet and other investors. And within a two month time
interval, Goldman Sachs and other investors invested over $100 Million in
Foodpanda.

21
 OPERATIONS
Foodpanda is operating in 14 markets in Asia and 3 markets in Europe, including:

• Europe
✓ Bulgaria
✓ Germany
✓ Romania

• East Asia
✓ Hong Kong
✓ Japan
✓ Taiwan

• Southeast Asia
✓ Cambodia
✓ Laos
✓ Malaysia
✓ Myanmar
✓ Philippines
✓ Singapore
✓ Thailand

• South Asia
✓ Bangladesh
✓ Pakistan

22
 HOW DOES FOODPANDA WORK?
Foodpanda is an impressive platform that helps eateries to offer excellent service to
a wide range of customers who want to get their food delivered at their doorsteps.
The company generates profit through delivery fees; it decreases its operational cost
by offering discounts for bulk purchases Build a higher network to deliver food on
time Collecting cash before delivery Advertisement fees Offer different types of
deliveries besides food delivery. The on-demand app is increasing and has grabbed
tremendous limelight in the past few years. Have a quick look to know how
Foodpanda works to ensure prompt delivery to the customer’s doorsteps.

Step 1: Food lovers explore the list of nearby restaurants and menu to order mouth-
watering dishes from them.

Step 2: Restaurants receives an order and prepare food.

Step 3: Prepared order is handed over to delivery providers.

Step 4: Delivery provider delivers the meal to the customers’ place.

Step 5: Customers make payments and provide feedback according to their

experience gained.

The simple and effective working of the FoodPanda makes it the best choice for food
lovers and eateries. You can also invest in an app similar to Foodpanda to boost
your business growth for a long time. Foodpanda has a simple website and app
interfaces bridging the gap between restaurants and their customers. A customer
can track all the process from the preparation of food till doorstep delivery of food on
their app. Live location tracking is a famous trend in food ordering and delivery
businesses.

Foodpanda generate profit via home delivery fees that it charges. But as they grow
more in future, it might decrease the cost for them such as:

1. Purchase in bulk and discounts from food point. – Since they are buying a
lot then why not a discount? But they requires this from consumers demand.
2. Higher network to decrease time duration. – If they are small then they
need to be all places, all the time. That reduces efficiency and profits.
Economies of scale are a winner here.
3. Take consumer’s cash before delivery. – discount delivery services
coupons could be sold upfront for Foodpanda to get cheap financing
alternative compared to high interest loans from financial institutions.
4. Advertise. they could advertise for Restaurants that are not so popular or
even special edition homemade food that does not come every day.
5. Not just food. “I need some flu medication from the pharmacy delivered. Yes
I can’t even walk properly”. With a good network they could basically deliver
anything.

23
 CHAPTER- IV
COMPANY PROFILE

24
FOODPANDA CEO AND KEY EXECUTIVE TEAM

RALF WENZEL (GLOBAL)

CEO OF FOODPANDA

BENJAMIN BAUER (GLOBAL)

CO-FOUNDER AND CHIEF
MARKETING OFFICER

KIREN TANNA

FOUNDER OF FOODPANDA

CHRISTIAN MISCHLER

FOUNDER OF FOODPANDA

25
 FOODPANDA BUSINESS MODEL CANVAS
Foodpanda maintains a website and a mobile app that people can use to order food
from their favorite restaurants and eateries. People can search for restaurants that
deliver food to their addresses using Foodpanda's website/app. After choosing the
restaurant, users can select their meals which are then added to the transaction cart.
Once the meals are nalized, people can check out their cart and pay via online
payment gateways or through cash-on-delivery.Once the order is conrmed, a
notication goes to the restaurant. Every restaurant that partners with Foodpanda
gets access to a 'merchant app'. The restaurant conrms the order and prepares the
customer's meal.

As soon as the order is conrmed by the restaurant, a 'delivery signal' is sent to all
delivery partners via Foodpanda's 'delivery partner app'. The partner who accepts
the request (delivery signal) is entrusted with the responsibility of delivering the
customer's food. The delivery partner arrives at the restaurant to pick up the
prepared meal and delivers it to the customer. Foodpanda ensures to deliver a tasty,
healthy, and unique experience to eating to food loves. It has successfully eliminated
the need to travel to restaurants as food lovers can get their food delivered right at
their place. It’s all about ordering online; the platform connects restaurants with a
restaurant of their choice. Learn everything to know how the platform works, what
the business model consists of, and much more right away.

• Customer Segments

Foodpanda has a multi-sided business model; it has two interdependent customer

segments possessing its importance this segment includes: Consumers Restaurants
Delivery Providers

• Value Proposition

The platform offers primary value propositions, including convenience, accessibility,

customization, brand status, and cost reduction. Foodpanda creates accessibility by
allowing food stores to market their business to customers who don’t want to visit a
physical location and find difficulty searching the website online. It enables
customers to place an order from an advance solution, ensuring to offer
convenience, they can place order 24*7 without any hassle through the platform.
Customers are also provided with picking up orders or getting it delivered at their
place; they can pay with any payment method as per their convenience.

• Cost Structure

Foodpanda has a cost-driven structure that mainly aims to minimize expenses

through low-price value propositions and significant automation. The biggest cost
drivers for the platform are sales/marketing and a fixed cost. Some of the other major
drivers include customer support, administration, and also fixed expenses.

26
 SWOT ANALYSIS OF FOODPANDA
• STRENGTH OF FOODPANDA :
✓ Excellent Platform.
Foodpanda is known for its robust and user-friendly website and mobile app.
Customers can use these mediums to order meals without any hassle. They
can browse from an extensive list of restaurants. Moreover, customers can
track the entire process from placing of the order to receiving the delivery.

✓ Online Ordering.
Foodpanda accepts orders through its website and mobile application. It
connects customers and restaurants over the internet.

✓ Investment.
Foodpanda has raised $318 million of venture capital. It raised nearly $20
million in initial funding from Rocket Internet and investment AB Kinnevik in
the year 2013. During the same year, iMENA Holdings invested approximately
$8 million. Foodpanda also received another $ 20 million in the year 2014.
Goldman Sachs also invested approximately $100 million in Foodpanda.

✓ Strong Brand Name.

Foodpanda was taken over by the firm 'Delivery Hero' in the year 2016.
Delivery Hero manages several international brands. It handles Foodora,
HelloFood, Delivery Club, and many others besides Foodpanda.

✓ Great Customer Support.

Foodpanda provides excellent customer support. It keeps experimenting with
food menus and consistently partners with new restaurants. Therefore,
customers can always expect something new from Foodpanda.

• WEAKNESS OF FOODPANDA :
✓ Orders From Nearby Restaurants.
Orders are available only from restaurants that are located in the same
location as the delivery address. This restricts the customers from trying out
various restaurants.

✓ Tap On Free Delivery.

The quantity required for free delivery is at times way more than what one
asks for or can afford.

✓ Coverage.
Foodpanda doesn't cover most of the cities completely.

27
 • OPPORTUNITIES FOR FOODPANDA :
✓ Growing Market.
Foodpanda competes in a segment that continues to grow. Hence, there is
immense scope for improvement.

✓ Customer Expansion.
Foodpanda should tie up with new restaurants and update its website/app for
attracting foodies.
✓ Embrace Customer Loyalty Programs.
Foodpanda may establish customer loyalty programs to retain customers.
These programs could provide specially curated offers and discounts.

• THREATS FOR FOODPANDA :

✓ Increasing Competition.
The list of startups and established companies that are present in the online
food delivery segment is increasing with each passing day.

✓ Changes In Economic Conditions.

Economic changes and volatility can crush even the best. Foodpanda needs
to build resilience to withstand rough times.

✓ Ease Of Visiting Nearby Restaurants.

People at times prefer to go to a nearby restaurant rather than ordering
online. This is one of the biggest threats to Foodpanda considering its
business model.

Fig 4.1 Fig 4.2

CONCLUSION OF SWOT ANALYSIS

After an in-depth study of the swot analysis of Foodpanda, we have realized that
Foodpanda is indeed the world’s lead growing online food delivery service providing
company. The economic recession, free promotional deliveries, and limited hotel and
restaurant networks are some of the main challenges. Foodpanda should expand its
food menu and offer discounts in order to expand its market share.

28
 MARKETING MIX OF FOODPANDA

Fig 4.3

• Product in the Marketing Mix Of Foodpanda :

Foodpanda ensures the healthy, tasty and unique experience of eating without the
hassle of travelling or prior planning. It is all about ordering through mobile and
online as it connects customers to the restaurant of their choice. Brand sends the
ordered food directly to restaurants which later deliver it to customers. Ordering food
is a simple method. A customer has to enter postcodes on site and then browse for
food items from the list of available restaurants. Items can be easily selected while
browsing through the menu.

Foodpanda confirms the order and estimated delivery time by sending an SMS.
Choosing, ordering and paying are through online applications. On restaurant pages
company has a review section where a consumer can comment on several features
like delivery, sales process, overall impression and taste.

• Place in the Marketing Mix Of Foodpanda :

Foodpanda is an international company that allows placing food orders from local
restaurants through websites and mobile applications. Its network is spread all over
the world in nearly forty-three countries with headquarters base in Berlin, Germany.
Foodpanda has ties-ups and deals with an estimated forty thousand restaurants in
the global market. It started from Singapore and by the beginning of the year 2016
was operating in Latin America, Eastern Europe, Russia, Africa and Asian countries
like India, Bangladesh, Thailand, Singapore, Malaysia and Pakistan.

• Price in the Marketing Mix Of Foodpanda :

Foodpanda has become a huge online portal and this has been possible because of
several pricing policies are undertaken by the brand. It has adopted a value-
added pricing policy as it offers quality items for a reasonable price to its customers.
It faces competition from several brands and hence has also adopted competitive
pricing policy that allows it to maintain reasonable prices for items. Customers are
offered several incentives like discounts and special offers to lure them away from
rival brands. It also makes its services more affordable and ultimately results in more
orders and better revenues for Foodpanda.
29
 • Promotions in the Marketing Mix Of Foodpanda :

Usage of Digital marketing has played a huge role in creating brand awareness for
Foodpanda. The company believes in offering something new and inventive
periodically in terms of food festivals, offers, and incentives to maintain the loyalty of
its customers through email marketing.Friendly applications have been a great
source of luring customers to its base in case of Foodpanda. It reminds customers of
easy and quick availability through Apple and Google Play store.

Promotional ads are also placed on various apps to maintain brand recognition.
Publicity events have been launched in popular malls, television, radio, cinema,
magazines, newspapers, train hoardings, bus hoardings and billboards. Since
December 2015, it has made a deal with Indian Online Railway System under which
it is possible for a customer to place food orders while travelling.

FOODPANDA REVENUE MODEL

• Registration Fees Charged From The Restaurant

Foodpanda charges a registration fee from the restaurant to add the latter on its
website/app. The restaurant (once added by Foodpanda) becomes visible to
customers searching for local restaurants. The registration amount ranges between
$100 to $150. It is a one-time fee.

• Commission From Restaurant

Foodpanda charges commission from restaurants on every food order they receive
through its platform. The commission is generally between 15% and 25% inclusive of
all taxes. The commission is decided considering the restaurant's location.

• Delivery Fee From Customers

There is a delivery fee for each order that a customer places on the Foodpanda app.
Apart from this fee, there are other taxes that customers have to pay.

• Advertisement

Foodpanda is a marketing platform for many restaurants, particularly newcomers.

Restaurants can increase their visibility by registering on Foodpanda. They can also
pay a certain amount to advertise their brand on the app.

• Aliate Income

Foodpanda also makes money by offering suggestions on the credit cards of various
banks. Moreover, banks send out discounts and special offers on their cards to
encourage transactions.

30
Economy statistics:

➢ 45% of adult population have used at least one on-demand service.

➢ 55% of people offering services in ondemand economy experienced improved
financial status.
➢ 46% of on-demand customers have an annual income of less than $50,000
and only 22% have an annual income of more than $100,000 or more. It
means that on-demand economy is not for wealthy only.

The delivery part is mostly handled by restaurant owner. So, this is not all you need
to know for starting your online food ordering and delivery website or mobile
application.

Below are some other critical points;

• Online Food Ordering systems partner with local restaurants that offer home
delivery, and prepare a database. Every food order placed through the
website or mobile application, the food point gives a pre-decided commission.
• Food point can also get featured on the website homepage for publicity.
• Their largest amount of revenue comes from the commission of the
restaurants they tie-up with. According to the words of the CEO of Foodpanda
Indian Branch Mr. Saurabh Kocchar, “Foodpanda earns 40% of its revenue
from delivery business“.
• The display ads connected with the CPM, allows Foodpanda to earn a 10%
profit. Normally, it charges advertisement fee for pages served, ads unit
served per page, redirecting to pages.
• When a user orders food from the website of Foodpanda, then 5-10% of the
total price of the ordered food is given to the company.
• The company also generates revenue by selling it’s customers habits to the
market researchers.
• Another revenue model that the company focuses on is making a new
entrepreneur sit in each country, who use global standards that can help
improve that market. They mainly focus on changing user behavior.

31
 HOW DOES FOODPANDA MAKE MONEY?
Foodpanda’s most immense amount of revenue mainly comes from restaurants
commission with which the platform has partnered. The report shows that the
platform earns more than 40% of revenue from the delivery business, while 10%
profit from ads. There are many other ways through which Foodpanda generates
revenue; explore to know how it creates money.

• Registration Fees:
Digitalization has increased the craze of getting food delivered right at their
doorsteps. Rather than restaurants and craving nowadays, food lovers love to
leverage the custom home delivery facility. Foodpanda eliminates extra
initiatives to manage and find delivery services. Foodpanda changes
approximately $100 to $150 for the registration.

• Advertisement:
Foodpanda charges advertisement fees from brands. It enables restaurants to
advertise their business on the platform.

• Delivery Charges:
Foodpanda charges fees on every delivered order; delivery charge cost
entirely depends on delivery location.

• Suggesting:
When users open the Foodpanda app or website, they come across the
bands, credit, debit, and other payment methods. The platform charges some
amount from banks and companies for suggesting them to customers; this is
an affiliate income source for Foodpanda.

• Commission:
Foodpanda claims around 20% commission on every order which customers
place through the platform. Besides commission, restaurants don’t need to
pay the place rent, electricity bills, and other service costs; this ensures great
profit-making for the platform.

• Ending Note:
Undoubtedly Foodpanda has faced numerous ups and downs throughout its
business journey, but the food giant successfully ensures its survival.
Foodpanda offers a seamless experience to customers by enabling them to
get their favorite dishes delivered at their doorsteps. Foodpanda captured a
vast base in the online marketplace and is here to stay for a longer time. You
can also develop an advanced delivery platform for your business.

32
 SOURCES OF EXPENSE
1) Development and maintenance cost of online ordering system including
website, merchant app, customer app, delivery partner app, and backend
system for managing all of these systems.
2) Salaries and provisions to full-time employees.
3) Salaries and incentives to delivery partners.
4) Administrative costs.
5) Benefits are given to customers in the form of offers.
6) Returns and refunds.
7) Miscellaneous expenses.

ACHIEVEMENTS TILL NOW

• Foodpanda started it’s journey in 2012 under the name of Rocket Internet.
• Presently it is working across 5 continents and a total of 24 countries in the
whole world.
• Active in more than 500 cities and tied up with almost 40,000 restaurants all
around the globe, Foodpanda has a big team of approximately 4,000 people
over the world.

SOME INTERESTING FACTS & FIGURES ABOUT FOODPANDA

• Founders: Lukas Nagel and Rico Wyder
• Founded: in 2012 Headquarters: Berlin, Germany.
• Foodpanda Valuation: $6 billion
• Foodpanda Funding: $100 Million from Rocket Internet and other investors.
Statista report shows that Foodpanda received around 8.7 million in 2014
alone while it had completed about 22.6 million in 2015.

❖ Foodpanda revenue has increased drastically between 2013 and 2016; its
revenue has reached around 50.6 million euros by 2016.
❖ Foodpanda has incredible traffic worldwide; it has 96.85% from Thailand,
while 1.19% United States.

33
 FUNDING
• As mentioned earlier Foodpanda works under the name of rocket internet
which is the biggest internet companies in the world.
• The company raised funding of $20 million to make it stable in the market
and the funding round was led by AB Kinnevik, Phenomen Ventures, and
Rocket Internet in April 2013.
• Furthermore, in September 2013 Foodpanda again raised funding of $8
million from iMENA Holdings.
• Then, again in February 2014 Phenomenon Ventures and other investors
gave more $20 million to the company. And the list doesn’t end here,
• Another funding round took place in August 2014 in which the company raised
$60 million.
• Then, in March 2015 rocket internet funded the company with a huge amount
of $110 million and in May 2015 Goldman Sachs and some other investors
gave the company funding of $100 million.
• The list is unending and the company continues to raise huge funding from
the investors that are helping the brand name to get wider and wider across
the globe.
• Foodpanda is becoming the Amazon for the foodies and with it’s current
presence in 24 countries is looking forward to expand itself worldwide.

INVESTMENTS
The company raised a total of $318 million in venture capital. Foodpanda raised $20
million in initial funding from Investment AB Kinnevik, Phenomen Ventures and
Rocket Internet in April 2013.

In September 2013, iMENA Holdings invested $8 Million.

In February 2014, there was another funding round of $20 million from a group of
investors, including Phenomen Ventures.

On August 11, the company announced that it has collected another $60 million in
financing from a group of investors.

In March 2015, the company announced it has raised over $110 million from Rocket
Internet, as well as other investors. Less than two months later, a group of investors,
including Goldman Sachs, invested over $100 Million in Foodpanda.

34
 FOODPANDA COMPETITORS

1. What is Uber Eats?

➢ Uber Eats is the easy way to get the food you love delivered.

2. What is Zomato?
➢ Zomato is the fastest way to search for great places to eat around you.
Serving 23 countries worldwide.

3. What is Swiggy?
➢ Swiggy is a food ordering and delivery company based out of Bangalore,
India. Swiggy was inspired by the thought of providing a complete food
ordering and delivery solution from the best neighbourhood restaurants to the
urban foodie.

35
 4. What is Postmates?
➢ Postmates is transforming the way goods move around cities by enabling
anyone to have anything delivered on-demand.

5. What is ChowNow?
➢ Keep pace with the big brands and grow your customer base—all
commission-free. With ChowNow, your customers can place orders for in-
store pickup, curbside pickup, delivery, and contactless dine-in everywhere
they connect with you online—from your own mobile app, to popular platforms
like Yelp, Google, Instagram, and more.

6. What is DoorDash?
➢ DoorDash is a technology company that connects people with the best in their
cities.

36
 7. What is Seamless?
➢ Seamless is simply the easiest way to order food for delivery or takeout.
Whatever you're in the mood for, wherever you're in the mood for it, you've
got it. No menus, no phone calls, no repeating yourself.

8. What is DeliverAI?
➢ DeliverAI is the latest, easiest and most efficient solution to get your business
online in less than 30 minutes. Easily integrated with logistic providers,
analytics, social media, DeliverAI is able to generate and handle orders
across more than 100+ different channels, including promotion, loyalty, order
tracking. Launched in Dubai in October 2020, DeliverAI has easily reached
more than 100+ customers worldwide.

9. What is Slice?
➢ Slice is uniting and empowering local pizzerias with tech, data, and marketing
to take charge of their industry, to bring their business into the digital world,
and to provide handcrafted, quality pizza with the utmost convenience.

37
 10. What is Delivery.com?
➢ Delivery.com lets people order online from their favorite local businesses and
the ones they've yet to discover.

FUTURE PLANS
Foodpanda is ordering its services across the globe and turning out to be a great
competitor in the food ordering and delivery services. Rebranded as Foodora in all
other countries except in India. Foodpanda was acquired by Delivery Hero in
December 2016. Later, cab aggregator Ola in India has acquired Foodpanda in the
Indian market in December 2017.

FoodPanda believes there still are inroads to be made in the food delivery market,
which potential remains largely untapped across Asia-Pacific. It hopes to do so not
by building a "super app" like several of its contemporaries are doing, but by using
technology to diversify services with "strategic" synergies.

The Singapore-headquartered food delivery platform processes an average of seven

to eight orders per customer per month, which can be considered high in the e-
commerce realm. However, compare that to the multiple times individuals consume
food each day, those figures are still low, according to FoodPanda's Asia-Pacific
CEO Jakob Angele.

The food delivery industry remained young, he said, with plenty of room for more
innovation and technological advancements to take place. This development was
especially critical for food aggregators and platforms such as FoodPanda, which
operated on thin margins and without the luxury of overcharging for their services.

"So the question is how can we encourage customers to have more touchpoints with
food, or FoodPanda, supported by technology," Angele said in a video call with
ZDNet.

Acquired by Berlin-based Delivery Hero in 2016, FoodPanda currently has presence

in 12 Asian markets including Thailand, Hong Kong, the Philippines, and its latest
addition Japan.

38
It processed as many orders In the fourth quarter of 2020 alone as it did in all of
2019. This growth, no doubt, was fuelled in large by the global pandemic, which kept
consumers mostly indoors.

Angele declined to provide figures on how many active users the company has or
the transaction volumes it processed each month.

The desire to expand its customer touchpoints drove the company to introduce food
pickup and grocery delivery options, the latter of which was fulfilled through its
PandaMart service. Since the launch of the first store in Singapore in October 2019,
there now are 150 PandaMarts in 40 cities across eight of its markets, including
Taiwan, Bangladesh, and Pakistan, and the service is targeted to be available in all
12 markets by year-end. The grocery delivery service currently boasts an inventory
of more than 5,000 grocery and household products, with a promise to deliver an
order within 25 minutes.

The company taps data analytics to determine how many PandaMarts a city needs
based on variables, such as consumer density, and where to place them to optimise
their reach, according to Angele. A city-state such as Singapore, for instance, may
require up to 20.

More recently, monthly subscription-based service PandaPro was introduced to offer

various benefits including members-only deals and reduced delivery fees. Again, the
CEO declined to provide subscription figures, noting only that the takeup rate was
"encouraging" and members placed more orders than the average user. He added
that more development was planned and new features would be added to the
subscription service.

PandaPro in Singapore is available at a promotional rate of SG$7.99 per month until

April, after which it goes up to SG$14.99. The bulk of FoodPanda's revenue, though,
still comes from its cut of each transaction processed.

He did note that while the COVID-19 outbreak helped drive orders on the food
delivery platform, there were challenges initially as the team attempted to navigate
the new landscape. For one, dine-in service was shut as Singapore entered into a
partial lockdown during the early days of the pandemic as the nation worked to stem
the spread.

FoodPanda's role here was to drive consumer demand and make it more affordable
for these merchants to stay on the platform, he said, noting that the company then
rolled out various initiatives including providing masks for delivery riders and waiving
delivery fees to drive orders.

It also had tools to quickly identify surges in demand so it could better manage its
network of riders. In addition, restaurants could integrate their ordering system, so
customer orders showed up as part of their internal order flow, as well as manage
their own product listing with FoodPanda's platform.

39
 Fig 4.4 Fig 4.5

• SUPER APP TERM SO OVERUSED

While coy on the company's product roadmap, the CEO was adamant that there
were no plans to build a "super app" like some of its contemporaries such as Grab
had done. Once just a ride-sharing service, Grab since has expanded its platform to
be an "everyday super app" from which consumers could access essential services
they needed daily, including transport, food, logistics, messaging, mapping, and
payments.

Describing the term as "heavily overused". Angele stressed the importance of "smart
diversification" through strategic synergies. This focus had prompted FoodPanda to
include groceries and selected shops on its delivery platform, which he said was a
natural extension to better support consumers who accessed its app in search of
food. So rather than build an super app, much of the company's focus on product
development this year would be on user experience. He noted that a large part of
this for most food aggregators had been adapted from ride-sharing or e-commerce
platforms.

FoodPanda this year would be looking to make food ordering "more social and more
engaging and more personalised", he said, adding that its users today still needed to
choose and decide from a multitude of available food options. "It would be exciting to
see [to what] point FoodPanda can better know what you want to eat today than you
do yourself," he added. He acknowledged there also were areas to improve and
concerted efforts were being made here, such as improving interactions with
customers who encountered issues with FoodPanda.

The focus here was to enable customers to be able to resolve any issue themselves,
without needing to interact with a FoodPanda agent, as well as to improve the
interaction where a customer would need to engage with an agent, he said. Angele
also revealed that the company was open to potential acquisitions or partnerships
that would help grow and strengthen its market footprint.

40
 CHAPTER- V
RESEARCH METHODOLOGY

41
 WHAT IS RESEARCH METHODOLOGY?
Research methodology is the specific procedures or techniques used to identify,
select, process, and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study’s overall validity
and reliability. Research methodology simply refers to the practical “how” of any
given piece of research. More specifically, it’s about how a researcher systematically
designs a study to ensure valid and reliable results that address the research aims
and objectives.

For example, how did the researcher go about deciding:

• What data to collect (and what data to ignore)

• Who to collect it from (in research, this is called “sampling design”)
• How to collect it (this is called “data collection methods”)
• How to analyse it (this is called “data analysis methods”)

In a dissertation, thesis, academic journal article (or pretty much any formal piece of
research), you’ll find a research methodology chapter (or section) which covers the
aspects mentioned above. Importantly, a good methodology chapter in a dissertation
or thesis explains not just what methodological choices were made, but also
explains why they were made.

In other words, the methodology chapter should justify the design choices, by
showing that the chosen methods and techniques are the best fit for the research
aims and objectives, and will provide valid and reliable results. A good research
methodology provides scientifically sound findings, whereas a poor methodology
doesn’t.

WHAT IS PRIMARY DATA?

Primary data is a type of data that is collected by researchers directly from main
sources through interviews, surveys, experiments, etc. Primary data are usually
collected from the source—where the data originally originates from and are
regarded as the best kind of data in research.

The sources of primary data are usually chosen and tailored specifically to meet the
demands or requirements of a particular research. Also, before choosing a data
collection source, things like the aim of the research and target population need to
be identified.

42
For example, when doing a market survey, the goal of the survey and the sample
population need to be identified first. This is what will determine what data collection
source will be most suitable—an offline survey will be more suitable for a population
living in remote areas without internet connection compared to online surveys.

Examples of Primary Data:

• Market Research

This is an important aspect of business strategy that involves the process of

gathering information about the target market and customers. The data gathered
during market research is primary as it is tailored specifically to meet the business
needs.

An organization doing market research about a new product (say phone) they are
about to release will need to collect data like purchasing power, feature preferences,
daily phone usage, etc. from the target market. The data from past surveys are not
used because the product differs.

• Student Thesis

When conducting academic research or a thesis experiment, students collect data

from the primary source. The kind of data collected during this process may vary
according to the kind of research being performed—lab experiments, statistical data
gathering, etc.

For example, a student carrying out a research project with the aim of finding out the
effect of daily intake of fruit juice on an individual's weight will need to take a sample
population of 2 or more people, feed them with fruit juice daily and record the
changes in their weight. The data gathered throughout this process is primary.

• Trauma Survivors

Although people react differently to trauma, there is usually a trait common to people
who have gone through the same kind of trauma. The research aimed at finding out
how victims of sexual abuse overcame the traumatic experience will include
interviewing the survivors, sending them surveys, or any other primary source of
data collection.

Experiences differ and every situation is unique. Therefore, using secondary data
may not be the best option in this case.

43
 WHAT IS SECONDARY DATA?

Secondary data is the data that has already been collected through primary sources
and made readily available for researchers to use for their own research. It is a type
of data that has already been collected in the past.

A researcher may have collected the data for a particular project, then made it
available to be used by another researcher. The data may also have been collected
for general use with no specific research purpose like in the case of the national
census.

A data classified as secondary for a particular research may be said to be primary for
another research. This is the case when a data is being reused, making it a primary
data for the first research and secondary data for the second research it is being
used for. Secondary data may either be published data or unpublished data. Usually
published data are available in:

• various publications of the central, state are local governments;

• various publications of foreign governments or of international bodies and
their subsidiary organisations;
• technical and trade journals;
• books, magazines and newspapers;
• reports and publications of various associations connected with business and
industry, banks, stock exchanges, etc.;
• reports prepared by research scholars, universities, economists, etc. in
different fields; and
• public records and statistics, historical documents, and other sources of
published information.

The sources of unpublished data are many; they may be found in diaries, letters,
unpublished biographies and autobiographies and also may be available with
scholars and research workers, trade associations, labour bureaus and other public/
private individuals and organisations.

Sources of secondary data includes books, personal sources, journal, newspaper,

website, government record etc. Secondary data are known to be readily available
compared to that of primary data. It requires very little research and need for
manpower to use these sources. With the advent of electronic media and the
internet, secondary data sources have become more easily accessible.

44
 CHAPTER- VI
LIMITATIONS OF THE STUDY

45
 RESEARCH LIMITATIONS

Fig 6.1

It is for sure that your research will have some limitations and it is normal. However,
it is critically important for you to be striving to minimize the range of scope of
limitations throughout the research process. For example, if conducting a meta-
analysis of the secondary data has not been stated as your research objective, no
need to mention it as your research limitation.

Research limitations in a typical dissertation may relate to the following points:

1. Formulation of research aims and objectives. You might have formulated

research aims and objectives too broadly. You can specify in which ways the
formulation of research aims and objectives could be narrowed so that the
level of focus of the study could be increased.

2. Implementation of data collection method. Because you do not have an

extensive experience in primary data collection (otherwise you would not be
reading this book), there is a great chance that the nature of implementation
of data collection method is flawed.

3. Sample size. Sample size depends on the nature of the research problem. If
sample size is too small, statistical tests would not be able to identify
significant relationships within data set. You can state that basing your study
in larger sample size could have generated more accurate results.

4. Lack of previous studies in the research area. Literature review is an

important part of any research, because it helps to identify the scope of works
that have been done so far in research area. For example, if you have chosen
to explore the role of Bitcoins as the future currency.
46
5. Scope of discussions. You can include this point as a limitation of your
research regardless of the choice of the research area. Because (most likely)
you don’t have many years of experience of conducing researches and
producing academic papers of such a large size individually.

LIMITATIONS OF THE STUDY

• Once a business model is created, then it restricts to implement new ideas for
the product.
• Creating a business model is time consuming as lot of factors needs to be
considered.
• There might be a chance that business model may turn out to be inaccurate.
• This study is only limited to foodpanda and no other consulting company.
• This study takes the past revenue and costs as base which are subject to
fluctuations.
• 99% of the data is secondary.
• The study only focuses on business model aspect of the firm to increase
profitability.
• Since the firm is already in existence it is very clearly instructed by the firm
that further capital investment, venture investment, change of business line
etc are not an option to increase the profitability.

47
 CHAPTER- VII
ANALYSIS AND FINDINGS

48
 RISK ANALYSIS

Fig 7.1

Irrespective of the revenue and profit that foodpanda makes it has to face a number
of challenges to survive in the market. It needs to make some developmental
changes to be able to compete in the upcoming future.

Therefore, there are certain setbacks of the company that every entrepreneur should
consider:

• Foodpanda has a false notification system which means very often they show
restaurants to be active while they are closed. Though they apologize for the
inconvenience later, still, it gets annoying for the customers.
• Sometimes the company also loses the record of the transaction, it makes no
response after taking the order and does not notifies if the order gets
canceled.
• Many countries indulge local companies and ban or limit the activities of
foreign countries like Foodpanda.
• There are many countries where companies like Pizza Hut, McDonald, and
other local shops have already made a strong market and thus it becomes
difficult for Foodpanda to establish itself there.
• 90% of customers still prefer ordering food offline as they find it too
complicated to order food online.

49
 CLASSIFICATION OF DATA

Table No: 6.1 Classification on the basis of Gender

Gender No. of Respondents Percentage
Male 26 52
Female 24 48
Total 50 100

Source: Secondary Data

Graph No: 6.1 Classification on the basis of Gender

Source : Table no. 6.1

It is clear from the table that 52% of the respondents are male and 48% of the
respondents are female. So by this we can interpret that majority (52%) of the
respondents participated in the survey are male.

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 Table No: 6.2: Classification on the basis of Marital Status
Marital Status No of Respondents Percentage
Married 13 26
Unmarried 37 74
Total 50 100

Source: Secondary Data

GRAPH No: 6.2: Classification on the basis of Marital Status

Source : Table no. 6.2

It is clear from the table that 26% of the respondents are married and 74% of the
respondents are unmarried. So with this we can interpret that majority (74%) of the
respondents participated in the survey are unmarried.

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 Table No: 6.3: Classification on the basis of Age Group
Age group No of Respondents Percentage
Below 25 35 70
Between 26-35 12 24
Above 36 3 6
Total 50 100

Source: Secondary Data

GRAPH No: 6.3: : Classification on the basis of Age Group

Source : Table no. 6.3

The above table and graph analysis represents that 70% of the respondents age
group is below 25 years, 24% of the respondents age group is between 26-35 years
and the remaining 6% of the respondents age group is above 36 years. Majority of
the respondents found in the survey are below 25 years of age group.

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 Table No: 6.4: Table showing Respondent’s Educational
Qualification
Educational Qualifications No of Respondents Percentage
SSLC 2 4
PUC/ diploma 4 8
Graduate 37 74
Post graduate 5 10
Others 2 4
Total 50 100

Source: Secondary Data

GRAPH No: 6.4: : Graph showing Respondent’s Educational

Qualification

Source : Table no. 6.4

The above table and graph analysis represents that 4% of the respondents
educational qualification is SSLC, 8% of the respondents educational qualification is
PUC/Diploma, 74% of the respondents educational qualification is graduation, 10%
of the respondents educational qualification is post graduation and 4% of the
respondents educational qualification is others. Majority of the respondents found in
the survey are graduates.

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 Table No: 6.5: Classification on the Basis of Respondent’s
Occupation
Designation No of Respondents Percentage
Professional 5 10
Business men 17 34
Govt. employees 6 12
Students 20 40
Others 2 4
Total 50 100

Source: Secondary Data

GRAPH No: 6.5: Classification on the Basis of Respondent’s

Occupation

Source : Table no. 6.5

The above graph analysis represents that 10% of the respondents are
Professionals, 34% of the respondents are Businessmen, 12% of the respondents
are Govt. Employees, 40% of the Respondents are Students and 4% of the
respondents are belongs to others. Its interprets that majority of the respondents are
participated in the survey are students.

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 Table No: 6.6: Table showing Monthly Income of the Respondents
Particular No of Respondents Percentage
Less than 10000 15 30
10000 -15000 12 24
15000 -20000 10 20
Above 20000 3 6
Total 50 100

Source: Secondary Data

GRAPH No: 6.6: Graph showing Monthly Income of the

Respondents

Source : Table no. 6.6

The above table and graph analysis represents 30% of the respondents monthly
income is less than 10000, 24% of the respondents monthly income is between
10000 to 15000, 20% of the respondents monthly income is between 15000 to
20000 and 6% of the respondents monthly income is above 20000. Majority of the
respondents found in the survey belongs to monthly income less than 10000.

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 Table No: 6.7: Table shows on the Basis Respondent’s order food
online
Particular No of Respondents Percentage
Yes 50 100
No 0 0
Total 50 100

Source: Secondary Data

GRAPH No: 6.7: Graph shows on the Basis Respondent’s order

food online

Source : Table no. 6.7

The above table and graphs showing that, all the respondents are who are
participated in the survey are ordering food through online.

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Table No: 6.8: Table shows respondents prefer online food delivery
Particular No of Respondents Percentage
Faster delivery 11 22
Convenient 13 26
Time saving 17 34
Money Saving 4 8
All of the above 5 10
Total 50 100

Source: Secondary Data

GRAPH No: 6.8: Graph shows respondents prefer online food

delivery

Source : Table no. 6.8

The above table and graph analysis represents that 22% of the respondents are
opined faster delivery they prefer online food delivery , 26% of the respondents are
opined Convenient they prefer online food delivery , 34% of the respondents are
opined Time saving they prefer online food delivery , 8% of the respondents are
opined Money saving they prefer online food delivery , 10% of the respondents are
opined All of the above they prefer online food delivery Its interprets that majority of
the respondents opined Time saving they prefer online food delivery (34%).

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Table No: 6.9: Table shows respondents Come to know about Order
food online
Particular No of Respondents Percentage
Advertisement 12 24
Friends and relatives 30 60
Word of mouth 8 16
Other sources 0 0
Total 50 100

Source: Secondary Data

GRAPH No: 6.9: Graph shows respondents Come to know about

Order food online

Source : Table no. 6.9

The above table and graph analysis represents that 24% of the respondents opined
They come to know about Online Food Ordering apps through Advertisement, 60%
of the respondents opined They come to know about Online Food Ordering apps
through Friends and relatives and 16% of the respondents opined They come to
know about Online Food Ordering apps through Word of mouth. Its interprets that
majority of the respondents opined They come to know about Online Food Ordering
apps through Friends and relatives. (60%)

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 Table No: 6.10: Table shows how often do respondents order food
online
Particular No of Respondents Percentage
Regularly 5 10
Frequently 25 50
Often 12 24
Rarely 8 16
Total 50 100

Source: Secondary Data

GRAPH No: 6.10: Graph shows how often do respondents order

food online

Source : Table no. 6.10

The above graph analysis represents that 10% of the Respondents opined that they
Regularly order Food in Online, 50% of the Respondents opined that they
Frequently order Food in Online, 24% of the Respondents opined that they often
order Food in Online and 16% of the Respondents opined that they Rarely order
Food in Online Its interprets that majority of the respondents order food in online
Frequently (50%)

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 Table No: 6.11: Respondents do prefer to order food Online
Particular No of Respondents Percentage
Over the mobile app 48 96
Over the web browser 2 4
Others 0 0
Total 50 100

Source: Secondary Data

GRAPH No: 6.11: Respondents do prefer to order food Online

Source : Table no. 6.11

The above table and graph showing that 96% of the respondents are opined that
they order food in online through over the mobile app, and 4% of the respondents
are opined that they order food online through Over the web browser. Its interprets
that majority of the respondents opined that they order food in online through over
the mobile apps

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Table No: 6.12: Table shows respondents typically order meal food
online
Particular No of Respondents Percentage
Break fast 5 10
Lunch 31 62
Snacks 4 8
Dinner 10 20
Total 50 100

Source: Secondary Data

GRAPH No: 6.12: Graph shows respondents typically order meal

food online

Source : Table no. 6.12

The above table and graph showing that 10% of the respondents opined that they
order breakfast through online, 62% of the respondents opined that they order Lunch
through online, 8% of the respondents opined that they order Snacks through online
and 20% of the respondents opined that they order Dinner food through online Its
interprets that majority of the respondents opined that they order Lunch through
online (68%).

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Table No: 6.13: Table shows respondents like to rate quality service
offered by foodpanda
Particular No of Respondents Percentage
Excellent 31 62
Good 12 24
Average 5 10
Bad 1 2
Terrible 1 2
Total 50 100

Source: Secondary Data

GRAPH No: 6.13: Graph shows respondents like to rate quality

service offered by foodpanda

Source : Table no. 6.13

The above table and graph showing that 62% of the respondents opined that Quality
service offered by foodpanda is Excellent, 24% of the respondents opined that
Quality service offered by foodpanda is Good and 10% of the respondents opined
that Quality service offered by foodpanda is Average. Its interprets that majority the
respondents opined that Quality service offered by foodpanda is Excellent, (62%).

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 Table No: 6.14: Table shows respondents say about the Cost
charging for foodpanda Service
Particular No of Respondents Percentage
High 30 60
Medium 13 26
Low 5 10
Can’t say 2 4
Total 50 100

Source: Secondary Data

GRAPH No: 6.14: Graph shows respondents say about the Cost
charging for foodpanda Service

Source : Table no. 6.14

The above table and graph showing that 60% of the respondents opined High the
Cost charging for foodpanda Service , 26% of the respondents opined Medium the
Cost charging for foodpanda Service , 10% of the respondents opined Low the Cost
charging for foodpanda Service , 4% of the respondents opined Can't say the Cost
charging for foodpanda Service . Its interprets that majority the respondents opined
High the Cost charging for foodpanda Service (60%).

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Table No: 6.15: Table shows respondents most important factors in
choosing foodpanda
Particular No of Respondents Percentage
Quality service 30 60
Goodwill 10 20
Brand value 7 14
Quick delivery 3 6
Others 0 0
Total 50 100

Source: Secondary Data

GRAPH No: 6.15: Graph shows respondents most important factors

in choosing foodpanda

Source : Table no. 6.15

The above table and graph showing that 60% of the respondents opined that quality
service most important factors in choosing Swiggy , 20% of the respondents opined
that Good will most important factors in choosing Swiggy , 14% of the respondents
opined that quality service most important factors in choosing Swiggy, 6% of the
respondents opined that Quick Delivery most important factors in choosing Swiggy
Its interprets that majority the respondents opined that quality service most important
factors in choosing Swiggy (60%)

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 FINDINGS
• 52% of the respondents are male.
• 74% of the respondents are unmarried.
• 70% of the respondents age group is below 25 years.
• 74% of the respondents educational qualification is graduation.
• 40% of the Respondents are Students.
• 30% of the respondents monthly income is less than 10000.
• 100% of the respondents are who are participated in the survey are ordering
food through online.
• 80% of the Respondents belongs to foodpanda.
• 34% of the respondents are opined time saving they prefer online food
delivery.
• 60% of the respondents opined they come to know about Online Food
Ordering apps through Friends and relatives.
• 50% of the Respondents opined that they Frequently order Food in Online.
• 96% of the respondents are opined that they order food in online through over
the mobile app.
• 80% of the respondents opined that they spend < 150 Rupees spend on
ordering food per time.
• 62% of the respondents opined that they order Lunch through online.
• 86% of the respondents opined that they prefer foodpanda App for ordering
food through online.
• 62% of the respondents come to know about foodpanda through Friends.
• 52% of the respondents are opined that Friends and relatives influences to
buy / suggest any product through online.
• 62% of the respondents opined that Quality service offered by foodpanda is
Excellent.
• 68% of the respondents opined that when they compared to other apps
foodpanda apps give better experience to him.
• 62% of the respondents opined High the Cost charging for foodpanda
Service.
• 60% of the respondents opined that quality service most important factors in
choosing foodpanda.

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 CHAPTER- VIII
CONCLUSION AND
SUGGESTIONS

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 CONCLUSION
Foodpanda is making great strides. The team at Foodpanda is leveraging social
media platforms to the fullest to engage customers. It has achieved considerable
growth through email marketing, social marketing, and mobile marketing. If
Foodpanda continues to innovate and improvise, it won't be long before it dominates
the online food-ordering and delivery segment.

This study was undertaken to examine the service quality, customer satisfaction, and
over all consumer preference of foodpanda. It is concluded from the study that the
majority of respondents and they are aware of foodpanda. The main limitations of
this study were time limit, the sample size was small and trustworthiness of the
customer’s. In this age of ever-increasing competition, it is important for foodpanda
to keep an eye on the preferences of the customers in order to capture the largely
untapped market.

On the basis of the study, it can be concluded that foodpanda has gained positive
opinion of majority of the consumers in comparison to other service providers. It is
mainly because of their better timely delivery and offers like discounts and freebees.
foodpanda has been in the top position in online food delivery service providers and
if it improves further, it can remain in the top.

The biggest difference between foodpanda and other food delivery start-ups is the
fact that they have their own delivery fleet and serve from neighborhood restaurants.
The boys are equipped with smart phones powered by routing algorithms which
enables them to deliver food in the most efficient way possible.

SUGGESTIONS
• Most of the respondents felt the prices of delivery charges are high. The high
price is one of the reasons for consumer to ordering food through online. So
food apps can consider this and reduce their delivery charges.
• The online food ordering apps have to improve their restaurants sites and
menus to satisfy the consumer in a better way.
• Advertising plays a very important role in the purchase of a online ordering
foods as most Customers are like to purchase because of advertisements.
• As most customers were between the age group of 20- 30 years so the
company strategies should focus on that age group 20- 30 years.
• The company should focus on giving better quality product as most customers
were very brand loyal and were generally satisfied with the product.

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 CHAPTER- IX
BIBLIOGRAPHY

68
 BIBLIOGRAPHY

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➢ External Links:
• http://www.foodpanda.com/
• https://tech.deliveryhero.com/
• https://craft.co/foodpanda/executives
• https://en.m.wikipedia.org/wiki/Foodpanda
• https://www.slideshare.net/
• https://startuptalky.com/
• https://www.youtube.com/watch?v=tjKtriLcj_M
• https://www.youtube.com/watch?v=d213u36SR70
• https://youtu.be/vNdFODSyvfY

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