News & Events

Foodpanda gets more orders through faster network speeds

Foodpanda sees double the customer re-order rates from lowering their delivery times

Many are already familiar with the food delivery startup, foodpanda. And even if you
are not, chances are you’ve probably seen the square, bright pink food delivery bags adorned
with a logo of a panda’s face on the back of underbone motorcycles as riders, with their
matching bright pink tops, scoot from their pickup points at the restaurant to the customer’s
home.

Foodpanda was launched in Malaysia about eight years ago and basically pioneered the
online food delivery space. The brand originally started out being part of the Rocket Internet
company but was acquired by the Delivery Hero group in 2016. As of today, foodpanda has
14,000 riders which service more than 18,000 restaurants across Malaysia.
Foodpanda Malaysia managing director Sayantan Das describes foodpanda as an online
marketplace for on-demand food delivery. What that basically means is it aggregate restaurants
all around Malaysia so that they can offer their menu on the foodpanda platform.
“Foodpanda also provide fulfillment in terms of last mile logistics – which is the part that’s most
visible to consumers; they pick up food to be delivered to the customers,” he adds.
Ordering food is as easy as tap, tap and tap.
From a customer’s perspective, ordering a meal couldn’t be any easier. Sayantan points out
that all a customer has to do is go on to the foodpanda app or website, choose their favourite
restaurant and pick a meal. The meal that they pick is then transmitted to foodpanda’s dispatch
system.

Once it’s transmitted to the dispatch system, the order is then dispatched to a rider within the
vicinity of that restaurant and the rider collects the food from the restaurant and then delivers it
to the customers.

Sayantan further elaborates that behind the scenes, there’s a dashboard, which foodpanda
develops in-house, that enables them to monitor their fleet in real-time. “We know whenever an
order is delayed, whether a rider is late to the restaurant or even early to the restaurant and this
tracking mechanism and software ensures that we know where our riders are at every point of
time during the delivery process and journey”, he explains.
Faster delivery with Maxis IoT Connectivity
Part of the equation that makes it possible for foodpanda to match its 18,000 restaurant partners
to a coordinated team of 14,000 riders nationwide is their partnership with Maxis Business IoT
Connectivity.

“We wanted a local partner that would understand and be able to manage an IoT (Internet of
Things) system as we rely a lot on our algorithm and dispatching system. These require that all
components to be able to talk to each other.
The expertise that Maxis provides for us in this space is very relevant because whenever you
place an order and there’s a connectivity failure, it means that your order might get delayed. So
with Maxis’s diverse footprint across the country, we can now rely on their advantage to make
sure that there’s no delay in the preparation or delivery of the food,” says Sayantas.
Sayantas explains that speed is everything in their business; “Before Maxis, there was a
latency of 2 seconds in terms of order received, order transmission and order dispatch. Right
now, we have a latency of 1 second or less and what that basically means is the order being
dispatched to the rider quicker.

“A lot of those challenges which existed previously, were eliminated thanks to Maxis. From a
customer perspective, this translates into faster ordering and faster delivery times. Riders too
love it when orders are dispatched quickly because that just means they can make more money
because they get more orders, so to them, it’s definitely a positive,” he adds.
To quantify how much faster after going on the Maxis platform, Sayantan says that they’ve
actually shaved delivery times by an average of two to three minutes nationwide.
“Customers definitely realise that and what we see is that customer re-order rates have
actually improved a lot as a result of the quicker delivery times. Because of the downwards
delivery times, customer re-order rates have actually increased by as much as two times more
in some areas,” he says.

Sayantan adds that while internet penetration is not an issue in the Klang Valley, it’s a different
story in other states. “As we move outside the Klang Valley, Maxis has time and time again
proven to be the best provider for us because of the internet speeds, as well as the analytics
and account servicing components that they provide.

“Maxis’s ambition is to help businesses of all sizes across key segments succeed by
simplifying and improving the way they work. Its converged offerings of innovative technologies
and digital solutions are built around an ‘always on’ proposition.
Maxis IoT Connectivity leverages its unique fixed and mobile network and backed by its
industry-leading network that ensures an unrestricted and worry-free experience which can be
enjoyed as a service,” explains Maxis Business head Enterprise Practices Claire Featherstone.
Supporting MSMEs

“If you look at Europe and America as an example, where they are both maturing markets with
high penetration rates, small F&B (food and beverage) players actually generate half of their
income online. So around 50 to 70% of their sales are generated through third-party food
delivery providers.

We see the same shift happening in Malaysia, so basically if you’re an MSME in the F&B
space, sooner or later you will have to go online to deliver a majority of your sales because
that’s what the customers want – the customers are guiding the market towards being able to
order food at the comfort of their homes or office.
In terms of the smaller F&B players, we try to bring them online as seamlessly as possible
while at the same time provide them with data analytics to engage them with what their
customers want and even go as far as consult them in terms of what needs to be to their menu,
price points, etc to make sure that it really engages the customers,” Sayantas explains.

Trends moving forward
Sayantan says that since a year ago, food delivery has been a booming industry in Malaysia.
Almost everyone in Klang Valley uses food delivery services at least once a week. “What we
see as a trend is for customers to move to a mom and pop store to order their favourite local
dish,” he adds.

Based on a foodPanda survey, Sayantan says, “In the next two to three years, 70% of
businesses will be online or 70% of revenue would be generated online. With mom and pop
shops, it’s really about the dollar and cents, so when we explain it to them, they get a better
perspective.”

He cited Bangsar South as an example, “When we get some stalls from the bazaar down the
road and people start seeing foodpanda riders around the bazaar, then the other guys want to
join in fear of missing out.

It affects everyone regardless if you’re 60 years old or six years old and that’s what we’re
seeing. It really does create a network effect and make the conversation easier once we get
those first three to five stores or mom and pop shops,” he explains.