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How Location Intelligence Drives Growth at foodpanda

Location Intelligence plays a pivotal role in foodpanda’s mission to bring the best of choice, convenience and affordability to its customers.

Foodpanda is a leading food delivery platform in Asia Pacific, operating in more than 300 cities across 12 countries. The platform has partnered with over 115,000 restaurants and works with over 80,000 delivery riders.

Foodpanda identifies its partner restaurants, delivery riders and customers as the core pillars of its business growth. The platform uses Location Intelligence to build on these three core pillars, which also drive foodpanda’s competitive advantage in the fierce food delivery market.

Offering the Best of Choice

Location Intelligence determines what is available in the vicinity of the customer, which in turn affects the number of restaurants displayed in the customer’s foodpanda app. Foodpanda runs an algorithm that calculates the optimum combination of zone size and delivery time. As zone size increases, the number of restaurants also increases, but with the trade-off of delivery time.

Once the optimum combination is determined, foodpanda further optimizes the choices by analyzing the customers’ order behaviors. The algorithm is constantly running at the backend to keep improving restaurant choices for every customer.

Additionally, foodpanda uses location Intelligence to ensure customers get enough choice of cuisines in their apps. From a customer’s order behavior data, foodpanda optimizes the types of cuisines, the number of choices and a variety of price points for every customer.

Image credit: foodpanda

Delivering Convenience

Foodpanda is aware of the vitality of the time element in its delivery operations, therefore it uses location Intelligence to utilize the network of its delivery riders effectively.

Once a customer places an order, the order goes to the restaurant. And while the restaurant is preparing the order, a delivery rider is assigned to pick up the order from the restaurant and deliver it to the customer.

In order to optimize the entire delivery experience, foodpanda uses an algorithm that reduces the wait time for its delivery riders. The algorithm analyzes the historical data of each restaurant to determine the average food preparation time. Once an order is placed, instead of assigning the nearest rider to the restaurant, the algorithm assigns a delivery rider who will reach the restaurant at approximately the same time as the food is ready. This way, the delivery rider will not have to sit idle, waiting for the food to be prepared. Here, location Intelligence is helping foodpanda utilize its rider network effectively, while ensuring convenient delivery for the riders and customers.

foodpanda riders (Image credit: Village Pipol)

By understanding the exact geo-location of its various entities, the system can even assign multiple deliveries for one rider in a single run if the time and location fit. Such hyper-local real-time operations require an intensive location Intelligence capability, especially to determine the most optimum assignment within microseconds.

Driving Affordability

Foodpanda runs extensive geo-targeted campaigns based on its customer behavior data. A lot of campaigns are targeted in the under-penetrated vicinity to increase its customer base.

Take, for example, a campaign for Papa John’s Pizza. First, the campaign material should be sent out to the customers during Papa John’s delivery timeframe. Second, it should go to the customers who are within the ambit of Papa John’s delivery area. The campaign can be optimized further to reach customers in the area who have already ordered from Papa John’s ─ to drive loyalty, for instance.

Image credit: foodpanda PH

Foodpanda also sends push notification messages localized for every customer, based on the location of the restaurant and the location of the customer. This has led to a superior customer experience across its platform.

Role of Location Intelligence in Food Delivery Service

Moving Towards a ‘Super App’

Beyond food delivery, foodpanda has recently launched ‘pandamart’ and ‘Pick-up’ services in its app in selected countries. Utilizing its extensive delivery rider network, pandamart offers quick commerce locally, where customers can get household products, including groceries, delivered to their doorstep. With the Pick-up service, customers are able to pre-order food and collect directly from the restaurant in a span of 15 minutes, avoiding the queues and wait times.

By leveraging the location Intelligence produced from robust data sciences and machine learning capabilities, foodpanda delivers convenience and personalized offerings to its customers, while also optimizing delivery operations for its network of partner restaurants and delivery riders.

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