Foodpanda Case Study

FOODPANDA CASE
STUDY:
HOW THE BILLION DOLLAR STARTUP MODEL
FAILED?
GOPAL CHANDRA BARIK

Business Case Study of Foodpanda :
Complete SWOT Analysis
 Foodpanda (or Hello Food) is a leading online food
distribution marketplace with a global presence. Its primary
function is to allow users to place orders at nearby restaurants
using its website or mobile app.
 Foodpanda is only used in Asiaand Europe, but it also operates

in Africa, Latin America, and the M iddle East under
HelloFood.
ESTABLISHMENT AND HISTORY:
 Foodpanda debuted in Singapore in May 2012 and

quickly became a hit. It had spread to 16 countries across the
world by the end of the year & successfully extended its market
to 23 countries worldwide by the end of February 2013. It now
has a presence on five continents and in over 500 cities around
the world. They have a substantial global team of more than
3700 workers and are partnered with over 38000 people.
FOUNDERS OF THE BUSINESSR
In 2012, Ralf Wenzel and Benjamin Bauer worked

together to create Foodpanda. The company's
headquarters are in Berlin, Germany.
 Ralf Wenzel
 Ralf Wenzel is the global CEO of Foodpanda or Hellofood and one of its co-
founders. He graduated from Berlin University with a degree in computer science &
was the Group Chief Operating Officer at Skrill Holding before becoming the CEO
of Foodpanda. Before that, he worked at Jamba/Jamster as a Senior Vice President of
Sales and Business Development.
 Benjamin Bauer
 Foodpanda's other co-founder and Chief Marketing Officer is
Benjamin Bauer. He holds a Master of Science in Business
Administration from WHU and a Bachelor of Science in Business
Administration from Maastricht University. He worked with venture
capital companies in San Francisco and Munich previously.
HOW THE COMPANY EXPANDED ITS
BUSINESS.
 As the business grows, they are working to broaden their network of
distribution options in each region. "Foodpanda service is all about
delivering the most famous dishes around Singapore from kitchen to
doorstep as quickly as possible," according to Jakob Angele, CEO of
Foodpanda Singapore. Since we now have our fleet of riders, our service
is more reliable and faster than ever, ensuring that food is delivered on
time." If the organization tries to gain market share in each of its
geographic areas, the logistics of its distribution system will undoubtedly
be a key priority.
 HOW DID IT OPERATE?
 Because of their user-friendly, high-quality, and robust interface, Foodpanda has become an
instant worldwide sensation. They've worked hard over the years to improve a variety of
features to boost their web traffic. Customers can order their favourite cuisine using either the
Foodpanda website or the Foodpanda app. Both the website and the software work in a similar
way.
 Foodpanda's ordering method follows a step-by-step procedure. First, Foodpanda collects the
customer's postal details. The information is then filtered based on the details of restaurants in
the region that offer delivery. In addition to the basic restaurant offers, there are several
additional bonus deals that a customer can use when ordering via Foodpanda on both the
website and the app.
 The restaurants' menus are further divided into subcategories based on the type of food they
offer. Customers receive a confirmation message from the Foodpanda operators after placing
an order, and they are notified of the expected delivery time. Foodpanda sends the order details
and the customer's contact information to the restaurant if there are any issues with the food
delivery. Of course, Foodpanda's popularity is focused not just on its restaurant partnerships
but also on its fleet of couriers.
 WHY FOODPANDA FAILED?
• Foodpanda's loss can be attributed to several factors, including fake restaurants and
orders, miscommunication, technological issues, unstructured business models, and
a lack of ownership. Few people were aware that Rohit Chadda and his brother
Mohit Chadda had left the business in August 2016. The company's workers were
unaware of the ongoing issues; they were getting calls from clients, and if they did
not deliver food, they were given free vouchers.
• Because these types of free vouchers were lucrative to them, the number of fake
customers increased? What caused this to happen? The flaw was that neither the
business nor the restaurants followed up with the customers. It was a deal between
the customer and the restaurants when a customer chose a restaurant from their
website. Foodpanda was utterly unaware of the order. Several restaurants and
consumers took advantage of Foodpanda in this way, contributing to the
company's demise.
• On May 16, 2016, a Mumbai-based fast-food chain ended its partnership with
Foodpanda, claiming it owed the delivery service company 1.5 lakh rupees and
that the company was delaying payment. The real explanation for this was that
Foodpanda had no record of such an order or transaction. This decade saw an
explosion of the Internet and a boom in digitization, and this delivering service
struggled to keep up with the evolving demands of digitized customers. Several
restaurants were identified as closed or indefinitely closed on the app. Food panda
may have made such a blunder because it did not want to lose customers.
However, the plan was largely flawed.
• Customers and restaurants often complained about Foodpanda's lack of
communication. Customers would often call restaurants to inquire about the
delayed delivery, but the restaurants were unaware that consumers had put on
order the app. Foodpanda failed to communicate about cancelled orders, and their
quick actions and miscommunications brought the company to its knees.
 Rohit Chadda, the co-founder and managing director of Foodpanda, founded
Ziner in 2014. Ziner's website and data seemed to be close to Foodpanda at first
glance. Chadda said that he did not own such a company and that Foodpanda's
data was not shared with anyone. The company has made over $300 million in
sales from Rocket Internet and Goldman Sachs since 2012.In 2016, more than
100 employees left the business after four years in various locations such as
Delhi, Mumbai, Pune, and Gurgaon, and their stories paint a very negative image
of the situation. Tasty Khana, based in Pune, was acquired by Foodpanda in 2014.
Sachin Bharadwaj, the company's founder, was extremely dissatisfied with the
lack of procedures, fake orders, fake transactions, financial irregularities, open
Excel sheets accessible to everyone, and general mismanagement. At this stage,
Foodpanda's demise had become inevitable.
CONCLUSION:
 Market volatility and fierce rivalry may be a roadblock, but there are ways
to get around them. "Man proposes, God disposes," as the saying goes.
You never know what will be available in the future; what you think is
right now will not be so in the future. It would help if you took such
precautions, such as talking to experts in-depth, to avoid making business
mistakes like Foodpanda's failure and mental turmoil. Years of experience
have honed their technical skills and business acumen, both good and bad.

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FOODPANDA CASE

GOPAL CHANDRA BARIK

 Foodpanda is only used in Asiaand Europe, but it also operates

 Foodpanda debuted in Singapore in May 2012 and

In 2012, Ralf Wenzel and Benjamin Bauer worked

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