Nauman Sikandar Mirza stepped down
Food Panda Pakistan’s Nauman Sikandar Mirza has decided to step down as CEO and Managing Director. Mr Mirza has been with the company for over six years and led it through many exciting changes, including the acquisition of EatOye in 2013, entering DeliveryHero Pakistan, and expanding its services into groceries with PandaMart.
It is important to understand the reasons for his departure, however. Apparently, his father viewed him as a failure and had discouraged him from pursuing his dream of running a business. In addition to wanting to prove himself to his father, he wanted to prove the western media wrong about Pakistan and show that the country isn’t as bad as it’s made out to be.
Foodpanda Pakistan is an online food delivery service that is growing at a faster rate than most other startups in the country. The company has increased its top line by 50% annually in the last three years, but expansion is still challenging. The company is geographically dispersed and it is more expensive to expand in Pakistan than it is to expand in other countries. Nauman Sikandar Mirza is also the founder of EatOye, a food guide and e-commerce platform.
Foodpanda’s Pakistan dream run could end if a riders’ strike threatens its business. Meanwhile, Foodpanda is also facing difficulties in other Asian markets. One of its drivers, Abdul Samad, was injured on the job during a delivery in Karachi and was hospitalized for several weeks. His insurance cover was so poor that it barely covered his hospital expenses, and Foodpanda also refused to pay him compensation for three weeks. This has left him with no source of income for the past four months and he is unable to work.
Foodpanda is a well-known online food delivery service in Pakistan, but a recent incident has caused some to question the company’s motives. A recent video shows a foodpanda rider being mugged in Karachi. Muhammad Noman was on his daily routine in Sector 1 when two men on motorcycles began approaching him. The riders tried to rob him. It is not uncommon for foodpanda riders to be mugged on the road in Pakistan.
Average number of orders has “slightly” gone down
Recent trends indicate that foodpanda is suffering from a customer service problem. The foodpanda app has been slow to deliver orders, and sometimes the order is delayed or canceled without notice. Moreover, Foodpanda’s prices are higher than what the restaurants are willing to offer directly. These issues have forced many loyal customers away from the app.
In the last few months, Foodpanda’s average number of orders has declined significantly. This is attributed to a variety of issues, including a lack of customer service. The company is Pakistan’s largest online food delivery service. Before this year, it was owned by German tech giant Rocket Internet. Then, in 2017, the company acquired local food delivery giant foodora and startup EatOye. Now, foodpanda is a part of the foodora group (Hero Delivery).
The stalemate between the two chief executives has led to the departure of two senior executives. Bharadwaj quit in March, while Chadda left in August. The two executives are not available for comment. Foodpanda’s CEO is unavailable for comment.
Food delivery websites are a good alternative to traditional food delivery. Many restaurants still ignore the middle class, and many food delivery websites cater to this sector. However, online food delivery is fraught with potential problems. One of the first such companies, Urbanite, has worked with restaurants to make its delivery services more convenient and reliable. Urbanite has reportedly delivered more than 50,000 orders in the last two years.
Social media and mainstream media discourses are closely connected. In a recent case of ‘platformed racism’, which has also been linked to online food ordering, food delivery services have removed accounts with racially inappropriate comments. They have also banned accounts with racist attitudes.
Delivery Hero’s interest in Foodpanda
Food Panda is a major player in the Pakistani food delivery market, claiming to be Asia’s largest. But the company has struggled in other countries, including India, where it was acquired by Ola. It did not respond to Rest of World’s request for comment. The company has been in Pakistan for nearly a decade and has recently acquired EatOye.
Foodpanda has faced challenges in the Pakistani market in recent years, including a shortage of riders and competition. However, the company also managed to identify new verticals and markets to focus on. The company plans to transfer its employees to its other verticals and industry partner networks. In addition, the deal will include a severance package for the foodpanda team. Delivery Hero has stated that the acquisition of Foodpanda will not affect its overall growth plans.
Meanwhile, the competition commission of Pakistan has opened an investigation into Foodpanda and its subsidiary Delivery Hero. The Competition Commission of Pakistan’s latest investigation focuses on whether the company is abusing its dominance over the Pakistani food delivery market. The probe is the first of its kind and will examine the extent of abuse by both food delivery services and delivery apps.
Foodpanda Pakistan has a network of more than 20,000 restaurants and 4,000 grocery stores, more than 50,000 riders, and 5,000 home chefs. However, it has faced criticism for its high commission rates with restaurants. Its average commission rate is about 25 percent. Hence, it is working to reduce its commission rates and make the service more cost-effective.
Foodpanda’s primary value proposition is convenience, accessibility, and brand status. Through a website and mobile app, Foodpanda connects users with local restaurants. Customers can choose from a wide variety of dishes and pick up their order at their convenience. Foodpanda also enables customers to pay with any method of payment, including cash or card.
Foodpanda has a strong commitment to sustainability and has launched a certification scheme called the Green Label. This scheme will assess restaurants on Foodpanda’s platform and award them certification if they meet specific criteria. It was developed with guidance from the WWF Singapore.
