Foodpanda is one of the online food ordering service platform that has seen an exponential growth in past few months in India & globally, started its operations last year in India, has completed one year today. Foodpanda, a Rocket Internet venture recently, raised USD 20 million in fresh round of funding and has also announced Rohit Chadda as its second managing director in India. We caught up with Amit Kohli who is the Co-founder and Managing Director at Foodpanda India, to know how the year went up for the company and future of Foodpanda in India.
Here is the detailed interaction
How has been your journey with FoodPanda in India so far?
Its been a very exciting journey for Foodpanda (www.foodpanda.in) over the last one year. Three achievements that we are particularly proud of:
1) We’ve grown to become one of the largest food ordering portals in India.
2) Built a network of 2000+ partners including some of the well know brands like: Pizza Hut, Subway, Nirula’s, Baskin Robbins, Mast Kalandar, Faasos amongst many others.
3) We have quite steadily ‘shaped the market’ towards ordering food online, instead of ordering on phone. This has helped us gather a lion share of the food delivery market, and propel us towards a leadership position in the market.
With FoodPanda working in 23 countries at the moment, are more countries expected to be added on the chart this year?
Yes, We are already live in 27 countries and hope to increase that to 33 countries within the year.
In past few months, FoodPanda have been operational in various locations, is it just the number game or regions are assessed prior launch? What is the basis for selection of regions?
India is a market with huge potential where the scope for growth is immense. However, with internet penetration of only 8%, it is only logical to target the more cosmopolitan Tier I cities which have a sizable working population with mature internet users.
We’ve seen a steady growth in traffic since our launch last year. However, the focus has really always been on quality traffic & targeting potential customers, which we have been able to achieve very successfully. We are growing by 25-30% on month-on-month basis.
Currently we get around 25000-30000 unique visitor a day. With this 65% of our traffic comes from Delhi, Mumbai & Bangalore and rest 35% from Chandigarh, Hyderabad and Pune.
What is the ratio between the customer orders from mobile in comparison to that of Web?
As of last week, mobile orders contribute ~15% to our total orders. We are seeing a steady growth in our mobile orders, with Foodpanda mobile app being amongst the top apps in the F&B category.
How many restaurants are listed on FoodPanda?
We have over 1800 restaurant partners in 10 cities currently and intend to grow to 5000 restaurants across 16 cities by the end of the year.
How big is the opportunity in this space?
The organised food industry is estimated to grow at 25% to INR 28,000 Cr by 2015 with the delivery segment growing even faster at 30-40% every year. Add to that, India’s favourable demographics (65% of our population is below 35 years if age), increasing online shoppers (20 million online shoppers, 50% of whom are below 25 years of age) and a potential 22 million (number of facebook users in the age group 18-22) increase in workforce over the next 5 years and you have the recipe to become a huge business
How would you like to differentiate yourself from other players in this space? Whom do you see as your potential competitor?
We believe our service and user experience is key differentiator for us. On a functional basis we also compete with COOKING AT HOME, EATING AT RESTAURANTS and ORDERING FOOD VIA PHONE. This Broader view on competition illustrates that we need to target people who are likely to order for home delivery and explain the specific advantages of ordering food online.
What marketing strategies are you using to acquire customers?
Being an ecommerce business, we believe it is best to target our potential customers when they are online in front of their computer screens, in encourage them to try us out. Hence our focus has majorly been on digital marketing channels.
What metrics are you using to measure your growth?
There are three fundamental metrics that we track to measure our performance: number of partner vendors, number of orders (and value/order), and repeat rate of our customers
Any new apps or features expected to be added on the website?
We believe in providing the best customer experience on our site and hence our product is continuously evolving adding new features almost every other week. We launched our mobile app in January and was very well received. We have already seen more than 250,000 app downloads worldwide which is a clear indicator of the need for innovation in the space and we are happy to take the lead.
How has been your experience of working with Rocket Internet?
Rocket Internet plays an active investor role for the ventures. And, most importantly, there is a healthy flow of best practices and learnings between Foodpanda ventures globally so you don’t end up making the same mistakes again and move much faster with your execution.