Rocket Internet's Indonesian branch, Foodpanda, saw its last day of operations on Monday (03/10). (JG screengrab)

Foodpanda Sees Rising Competition for Food Delivery

BY :TABITA DIELA

MAY 03, 2016

Jakarta. Maha Boga Nusantara, known as Foodpanda Indonesia, welcomes new competitors in food delivery sector with a fresh marketing strategy, the company executive said on Monday (02/05).

The Rocket Internet-backed Foodpanda, an online platform for delivering food from restaurants, promises an improved service for its individual and corporate customers this year — including fast delivery, easy online payment, group orders and more restaurants.

"Our strategy this year is to rearrange our business. We want to show the public that Foodpanda stands out for its service," Tika Sylvia Utami, head of marketing at Foodpanda Indonesia, told the Jakarta Globe.

Tika's comments come after ride-hailing app company Grab launched its beta on-demand food delivery service GrabFood. Foodpanda competitors also include Klik-Eat, Porter.co.id, and Go-Jek's Go-Food.

"The e-commerce sector in Indonesia is still just like a baby. It's just a beginning. We are still helping one and another through joined campaigns," she said.

"The local players in the food delivery sector are currently not that much."

According to Tika, Foodpanda offers delivery within 45-minutes, special retaining boxes to keep food warm or cold and a dedicated customer service system.

Unlike other food delivery services, Foodpanda offers a unique system which directly sends the customer's orders from browser and application to the restaurants to avoid order mistakes, she said.

Foodpanda Indonesia currently works with more than 1,000 restaurants in Jakarta, Bogor, Depok, Tangerang, Bandung, Surabaya, Bali, Makassar and Medan. Besides its 80 on-duty food deliverers, Foodpanda also works with app-based motorcycle taxi services Blu-Jek and LadyJek and the restaurant's own delivery service.

Despite new players, Foodpanda is confident for competition as it not only targets individual customers.

"This is the right moment for every each of us to improve our service. We, for instance, is expanding our brand," Tika said.

Foodpanda expands its own target market by introducing business-to-business service. This service allows a company to create a Foodpanda account and lists their employees, allowing them to order food individually or collectively at the company's expense.

"We currently cater around 60 companies," she said.

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