FoodPanda expands delivery service to Japan

FoodPanda has launched its food delivery service in Japan, pushing its network to 12 markets across Asia-Pacific. With an initial launch of three Japanese cities, the delivery services operator also is aiming to deliver groceries and daily essentials within 25 minutes. 

FoodPanda this week kicked off its Japanese debut in Kobe, Yokohama, and Nagoya, and would add another three cities -- Sapporo, Fukuoka, and Hiroshima -- from October 1 this year. 

Apart from food delivery, the company said its Japan launch would also focus on driving its "quick-commerce" offerings, where it looked to partner local retailers to deliver daily essentials and groceries within 25 minutes. Customers would have the added option of picking up their orders in-store. 

Citing figures from Statista, FoodPanda said Japan's online food delivery market was expected to record a revenue growth of 23.6% this year, up from 14.4% in 2019. The local market also was comparatively untapped, with a 16.6% adoption rate, while other markets in the region such as Singapore and Hong Kong had a penetration rate of 41% and 36.7%, respectively. 

The food delivery operator also pointed to further growth potential amidst safe distancing measures during the COVID-19 pandemic, which would push up consumer demand for delivery services. 

Established in 2012, FoodPanda operates in more than 300 cities across the region including Singapore, Hong Kong, and the Philippines, and is a subsidiary of German food delivery company, Delivery Hero. The latter's Asia-Pacific business saw a 166% climb in gross merchandise value and 44% increase in orders in the second quarter of 2020. 

FoodPanda itself had scaled its business during the pandemic, said CEO Jakob Sebastian Angele. "In the first half of 2020, we expedited on-boarding and doubled the number of merchants and riders on our platform across the region, so their businesses can survive the economic impact, while rider partners can continue to earn a living." Angele said.

The company now was targeting to clock double-digit growth in Japan by end-2020 and expand to more cities across the country. 

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