Hello friends, my name is sahil khanna and you are watching intellectual indies and today we’ll talk about Foodpanda their business model and how do they earn Like everyone is familiar with the business of foodpanda That it’s a food delivery system Means they’ll be around restaurants in the your locality and you can order anything from any restaurants at your home/work The need that they are trying to cater is that you don’t need to find restaurants or go outside You can order directly from your phone. Ratings of them And restaurants with the best rating Now you can order food from that restaurant. He can pay according to the desired price. Basically he can find the food he wants to eat at an affordable price. That’s why application was build So this is good for consumer Now let’s talk about their business model How do they earn? See let’s discuss their expenses The no. of restaurants they’ve tied up with They offer 20-25% discount to them If you are getting a thing in 100rs Foodpanda gets in 80Rs Or in 78 Rs It depends on their discoount Now foodpanda says They can give discount on that amount too. That’s why some restaurants give discount and some don’t Let’s consider 20% discount only After this, when you open the application of foodpanda Their you are already getting 20% off. 20% off Why would you go to the restaurant? Why wouldn’t consumer use it Obviously they’ll prefer foodpanda Indirectly foodpanda tranferred the work of restaurants to them. and there were cafe who were in loss They offered surplus discounts Increased his sale and it was a win-win situation Here Foodpanda is offering you 20% discount Means no profit no loss. Right? No Once in while you’ll get message where you’ll get 15% discount. 25% discount. Basically everyday. If you don’t receive any discounts. Add any food to the cart and delete it You’ll get the message. So on average 10% more discount. Means 80rs and 10% of 80=8 rs 72 total Now they sometimes charge for delivery and at some locations they don’t charge So that delivery person get 40-45rs tip. It depends on the day And there are many employees. But if you opt their fast delivery Then you have to give 25 rs. Here again they took the loss of 15 rs. So how are they earning? Expenses of employees Website running cost Cost of building Biggest expense is in advertising You see ads on tv and banners Ads on Google adwords Facebook ads So if you order somthing from foodpanda worth 100rs after applying all the coupon codes. So Foodpanda spends 30-40rs extra on you Why and how? Here let’s talk about ola and uber In india, cab wasn’t famous People prefered auto Because they have this perception of it as expensive But after ola and uber, they offered free rides. People get used to it And people perception changed that if they can get 6rs/km in cab at the same price of auto. The rate of cab was 10rs. If you research on this, you’ll get to know that in the past , rates of taxi was same(10rs/km) But ola and uber first brought awareness among public and created a need in the public that they can travel in ac cab. Same thing is applied by foodpanda. They are getting us addicted to order food from our home and we can compare the prices of food in one single application But i personally think In indian food market, consumer doesn’t care If they get discount from foodpanda then he’ll buy from foodpanda. But in future when their discounts are over. They’ll go somewhere else. Just like ola, i have taken many free rides from ola. Now when their discounts were over People switched to other thiings. You’ll always have options. Here You have one advantage. First mover advantage Does foodpanda have first mover advantage? Zomato is the same BUt foodpanda did create some differentiation But zomato is not offering much YOu’ll see many restaurants with this tag zomato certified. But we never see anything of foodpanda. You’ll see only this that foodpanda is connected with this restaurant but not certified. If you want to order at hom.e So this is the whole story that i shared with you after full research>You tell me , is this a profitable business or not. Will they be in profit in future? Answers of these questions are on you Okay friends, video ends here. I hope you liked it If you have any doubt or any confusion Do tell me in the comments section. Bye Goodnight Goodmorning Goodafternoon whenever you are watching this video.