COMPARATIVE ANALYSIS ON THE REVENUE MODELS

OF GRABFOOD & FOODPANDA

I. INTRODUCTION

Food Delivery Service could be a concept that everybody is introduced to since they were young.
Almost every restaurant round the world would supply food delivery services so they will
facilitate to their customer’s needs whenever possible. When one orders or calls in to order food
from a restaurant or a fast-food restaurant, the restaurant would prepare the food and drinks that
are ordered, and this is able to lead to someone having to drive or travel all the thanks to the
customer’s house to deliver the food that the customer has ordered. Food delivery service is very
popular for sustenance restaurants.

While lots of individuals would like to spend their free time going out with their friends and
families to different exotic or expensive restaurants, but there are some occasions within which
they might opt to have prepared food be delivered to their home. Sometimes, we prefer to food
delivery service once we are shorthanded of food during crowded or large places. it's little doubt
that the demand for food delivery service has skyrocketed over recent years, and this leads to
more restaurants implementing food delivery services yet.

There are Two of the biggest food delivery services in the Philippines today are Grab Food and
Foodpanda. Launched in the Philippines in 2018, Grab Food is relatively new in the industry yet
it has already amassed a large following. It’s the food delivery arm of the Singaporean transport
network company Grab. On the other hand, Foodpanda has been operating in the Philippines
since 2014. It’s part of Delivery Hero, a multinational online food delivery service based in
Berlin, Germany. Unlike GrabFood, Foodpanda’s business is solely dedicated to delivering food.

We have here additional information In Grab Food we may include, The food delivery service
was launched in Jakarta in 2016 and was later beta-tested in Bangkok, where it became a
"revenue driver" for partner merchants, Grab said. GrabFood connects users to nearby
restaurants and allows real time delivery tracking and will compete with Food Panda and
Lalamove. While In FoodPanda was Founded in Berlin, Germany, in 2012, Foodpanda came to
the Philippines in 2014, wherein a year after setting up shop, they were able to acquire one of
their local competitors, City Delivery.

Similarities and Differences

 Customer Service
Foodpanda and GrabFood have a feature that lets customers leave a short note about their order
to the rider. This seemingly trivial yet significant feature actually allows you to request change
for a large bill or give specific instructions on your order (e.g. less sugar for your milk tea,
removing egg, cheese, and nuts from your food, etc.).

Both have a chat feature that lets you get in touch with the rider. This is extremely helpful, as it
allows you to change some details in your orders or guide your rider to your home in case he gets
lost going to your location.

Foodpanda and GrabFood have a pre-order feature, which lets you place an order when a certain
restaurant is closed. You’ll then receive your order first thing when the shop opens the following
day.
 Payment Options
Both food delivery services offer multiple payment options. Foodpanda customers can pay via
cash on delivery (COD), credit card, debit card, or PayPal.

Likewise, GrabFood accepts payment through COD, credit card, debit card, and GrabPay
(Grab’s very own mobile wallet and payment solution).

However, keep in mind that each merchant or restaurant may accept only a specific kind of
payment. Small shops, for instance, are likely to accept cash only.

 Delivery Speed
Sometimes, customers may experience delivery delays on both food delivery platforms.
However, GrabFood appears to be generally faster at an average of around 30 minutes.
Foodpanda, on the other hand, sometimes takes too long. There are even a few occasions where
they cancel the order at the last minute.

Nevertheless, keep in mind that the delivery speed is influenced by many factors, such as your
location, the size of your order, the queue at the restaurant, the traffic conditions, and the vehicle
that your rider is using (for instance, some Foodpanda riders are using bicycles).
II. II. Examination of the Two Companies’ Revenue Models

GrabFood Revenue Model

One of the leading ride-hailing platforms, Grab is trusted by more than 187 million users. Right
from booking services for taxis, car-pooling, shuttle services, bicycle-sharing, etc. to on-demand
food delivery services, it has a lot to offer.

Grab offers services in Southeast Asian countries like Singapore, Malaysia, Indonesia, Thailand,
and the Philippines. In March 2018, Grab acquired Uber’s operations in these Southeast Asian
countries, which triggered its growth towards becoming one of the most popular cab hailing apps
in South East Asia. In fact, Grab claimed their annual revenue run rate to grow by 70% in 2020.

Grab is an online aggregator with a simple yet technologically advanced business model. It
offers an online platform for those looking for a ride and connecting them with the right people
willing to offer ride services. Grab charges a particular sum from the fare, while the driver gets
to keep the rest of it.

With more than 6 million rides per day and 2.8 million drivers, Grab is now one of the leading
on-demand businesses that offer more than just cab rides. Over the years, the company has
expanded and created multiple revenue sources from hotel booking services, food ordering
platforms, grocery shopping, and many more.
FoodPanda Revenue Model

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.

Foodpanda charges fees on every delivered order; delivery charge cost entirely depends on
delivery location.

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.

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.

Undoubtedly Foodpanda has faced numerous ups and downs throughout its business journey, but
the food giant successfully ensures its survival. The immense growth is an outcome of an
increase in preferences for online services.

lll. Conclusion
We conclude the Grabfood and Foodpanda they need their similarities and differences but both
of them are clearly the leading of the food delivery platforms within the Philippines, they bear
the pressure of improving their services and even the outdoing and outperforming one another
within the process. We are always liberated to install both food delivery apps on our gadgets or
might still visit their websites using our desktops in this way we'll get to experience what each of
them has got to offer.
First of all, customers can order food of their choice from their preferred restaurants with none
difficulties. Secondly customers can stay up to speed, not only in terms of food choices but also
in respect of specific delivery timing and other delivery requirements. Lastly, customers always
remain informed about the complete process and keep an eye fixed on the whereabouts of the
food through a GPS map right the mobile screen. In overall measure, this easy and smooth
customer experience has been a productive force for more sales and revenue.

Also this may atone for the dilemma where the restaurant or shop you’re trying to find and it's
unlisted with one among the food delivery apps and also the chances are high that that the shop
could also be listed with competitors. Always remember that In choosing what’s the simplest for
you mostly starts with comparing options.

Alinsub, Joshua
Nacion, Mary Joyce
Nievas Charles Stephen