Foodpanda, famously known for its cute looking pink panda logo and operating as a leading brand under Delivery Hero for online food and grocery platform – has launched a brilliant strategy for solo diners out there with its curated meals “Meal for One”.
With a Meal For One, customers can now order single-person meals on the app without a minimum order value and enjoy lower delivery fees, making it easier and more affordable to order food for one. This is extremely useful especially for singles out there who probably do not want to overspend on the food category simply just to hit the minimum order value previously curated and mandated for using an online food delivery option.
According to Foodpanda, customers placing the Meal For One orders can expect to save at least 10% compared to regular meal pricings, thanks to cheaper delivery fees and no minimum spending requirement.
Customers can access the Meal For One menu through a dedicated category on the app homepage, which is specifically curated for a better users’ experience of ordering and looking for what to order and eat.
According to Measurable AI, the average order value for the three leading delivery platforms is about in the range of USD 18-20. This is an old statistic number, but I think if we look today at those minimum order imposed by these platforms, it probably makes sense that people tend to order within these range in order not to be hit by minimum charges transactions.
What this move means is that the fight for market share will become even more intense as everyone is fighting for a piece of pie that they have not tapped into yet.
With this move, it also means that the average order value for Foodpanda will definitely drop to the lower side, as meal for one will probably average under USD 10, and with no minimum value imposed, I am not sure just how much this will affect their probability bottom line.
In a bid to go for profitability under the leading brand of Delivery Hero, this move might just gain them more market share at the expense of sacrificing their profitability in the short to mid term.
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