FOODPANDA

Logistic Issues and Challenges of Customers

and Vendors
a study on Foodpanda (online food app)
Introduction
The food delivery service industry is essentially a courier service
through which a consumer may order anything from a restaurant
or grocery store through, mobile app or website. There were no
restaurants that existed in Bangladesh before 2000 except only a
few Chinese restaurants. Few people took these chances and
began their dining in the Motijheel zone over time. And that
became an enormous success. Since that day, Bangladesh's food
industry has been a stable foundation.
Company Overview
Foodpanda is an online food and grocery delivery platform
owned by Delivery Hero. Foodpanda operates in 12 locations
worldwide. The Headquarter is situated in Berlin, Germany.
Foodpanda aims to redefine how food, people, culture and tech
are connected. Panda family of Bangladesh consists of problem
solvers, designers and thinkers, working around the clock.
Foodpanda started its operation in Bangladesh in 2013 and
currently it has 800+ employees and 15,000+ riders all over
Bangladesh. Foodpanda is one of the leading online food delivery
marketplaces in our country.
Objectives
 To find out how a proper customer service system can make a
positive impact on the brand image.
 To determine the customer's attitude if the customer does not
get professional customer service from the online food
delivery service provider.
 Identify the vendors attitude towards the food delivery service
after receiving a proper solution a critical issue due to a
smooth refund policy.
 To find out vendors selling behavior after repetition of similar
negative experience related to order.
SWOT Analysis
Strengths Weaknesses
 User Friendly  Price Discrepancy
Platform  Limited Restaurants
 Global Operation & Range
Fast Delivery  Uncovered Areas
 Trained Employees &
Customer Service

Opportunities Threats
 Growing Market  Government Policies
 Customer Expansion  Convenient going to
 Increase in Customer the nearby Cafes
Loyalty Programs
Competitive Market of Bangladesh
Order Cancelation
 Traffic Management of Bangladesh
 Fake Customers
 Shortage of Riders
Possible Solution
 Wage per Delivery needs to
be Increase
 Should follow the order
processing system of Pathao
Food
 Build a system to avoid fake
customers
 Provide motor-cycle to the
riders
Rider Management Problem
Internal Factors:
• Lower remuneration.
• Not enough scope, and growth.
• No job security for riders.

External Factors:
• Chances of accidents and
uncertain situations.
• Inflation in the country.
Possible Solution
 Ensuring job security
 Change the payment basis
 Providing non-monetary
incentives
Tab Operation Issues
• Restaurant shows
offline: Technical bug
• Old and used tab
provided to vendors
• Delay in tab repair and
replacement services
Possible Solution
• Improve tab repair service and trained the related teams
accordingly.
• Monitor and fix the bug immediately it comes to notice.
• Identify the real reasons for the order cancellation and not to
charge the vendors.
Findings
 Rider Management problem
 Salary of riders are comparatively low
 Benefits and compensation is less
 Job security isn’t ensured
 Traffic management problem
 Fake customer
 Rider shortage
 Old devices are provided to the
vendors.
 
Recommendations
• Riders job security should be ensured
• Payment should be done measuring the distance
• Motivation can be given
• Benefits and Compensation should be increased
• A system should be built to prevent fake customer
• For fastest delivery motor bike could be provided
• New and fresh conditioned tab should be provided
Conclusion
Food panda is a fast growing company with adequate growth.
They do a lot of promotion and as a result new customer and
vendor attract and demand increases but due to their lack of
support in logistics and operations they will eventually lack
behind. This rider problem, shortage of rider, cancellation of
order, tab issue etc. are taking away customer's faith as well as
vendor's. So if they actually do not minimize or solve their
logistics and operation problems then they are going fall in this
very competitive market. On the other hand, Pathao Food,
Paperfly, HungryNaki will grow and replace food panda soon.
THANK YOU!

Q/A