HungryPanda Business Model: Evaluating this Asian Food Delivery App

Establishing a food delivery business in an already saturated industry is challenging, but HungryPanda has proved that anything is possible with the right business plan. The HungryPanda business model focuses on serving a niche market, which is a major contributor to its success in the highly competitive food delivery sector.

Its unique business model demonstrates that there are ample opportunities for anyone who wants to build a food or grocery delivery business online if they take an approach that gives a competitive edge. For HungryPanda, this approach involves crafting a market-specific business model.

Let’s take a closer look at its business model, revenue channels, and some notable factors that have made a difference for the company. But before we delve into its business strategy, it’s essential to explore its background story.

HungryPanda Success Timeline: From Foundation to Becoming a Global Platform

The phrase “necessity is the mother of innovation” is apt to describe HungryPanda’s background story. The platform was born when Kelu “Eric” Liu, its founder, was struggling to order Chinese food from Nottingham’s local Chinese restaurants.

Liu always found it hard to read the English menus of those local restaurants. And this wasn’t only him; almost every Chinese student studying there faced the same problem.

On top of that, most of the British restaurants had heavily westernized Chinese cuisine to match the British taste buds. Only a handful of restaurants were serving traditional Chinese food.

This situation left Liu with a major disappointment and an intense craving for authentic Chinese food. To help himself and his fellow students, he decided to build an app in Mandarin where they could find Chinese eateries serving traditional food around them. This app was none other than HungryPanda.

Back then, the company was only focused on a niche audience, i.e., Chinese people living in other countries. But it soon became increasingly popular among everyone who loved this cuisine, which led to its launch in English, too.

As more and more people joined, the app started growing across England. Eventually, it became flexible around its offerings and started providing diverse Asian cuisines, including Korean, Japanese, and Southeast Asian.

After a period, the founder identified that there was a need for a reliable and convenient grocery delivery platform that serves fresh and authentic ingredients for Asian dishes. This led to the launch of Panda Fresh—HungryPanda’s grocery delivery segment.

Today, it has become a go-to place for all Asian dishes. It has crossed the British borders and become a truly global platform for finding not only ready-to-eat Asian food but also fresh groceries and specialty items that are popular in Asian countries.

The company caters to its 8 million+ customers with over 260K delivery providers and more than 120K restaurant partners across 60+ cities worldwide. In just a few years since its establishment, the platform has become a multinational food delivery company that comes neck-and-neck with many industry leaders.

No doubt, such immense growth requires ample financial support. To meet its monetary needs, the company has raised $275 million from various global investors. Let’s take a look at its funding rounds to understand its financial strengths.

Funding Rounds of HungryPanda

How HungryPanda Works: A Complete Breakdown of Its Workflow

The platform has emerged as a leading Asian food provider in the online food delivery sector. While its market-specific approach is a major advantage for the company, its smooth workflow also serves as a significant factor behind its widespread popularity.

This food delivery platform works through mobile apps (Android and iOS) to serve its customers with Asian cuisines and culinary items. It has two different applications for ready-to-eat food and grocery shopping.

HungryPanda is the main application that serves as a food ordering platform, while Panda Fresh is a grocery delivery app where customers can access various Asian grocery items and specialty products.

Both applications have engaging user interfaces and robust features that make ordering a breeze, allowing customers to seamlessly browse products, place an order, and track their delivery partners in real time.

Let’s dive deeper into how HungryPanda works.

• The platform has kept its registration process short, allowing customers to start ordering almost instantly.
• Customers, after successful registration, can explore a wide selection of restaurants or supermarkets (from HungryPanda and Panda Fresh, respectively).
• Each item is meticulously displayed, making it easier for customers to check out details like price, discounts, and more.
• The platform provides flexibility for doorstep deliveries and takeaway options, allowing customers to choose whatever suits them.
• Moreover, customers can also schedule their orders for later, accessing fresh food and ingredients whenever they need.
• The platform also offers multiple payment options, including cards and third-party digital wallets.
• Lastly, customers can track their order in real-time with information like estimated arrival time.

HungryPanda Business Model: An In-Depth Analysis of Its Different Components

The HungryPanda business model focuses on connecting Asian food fans with restaurants that serve this delicious cuisine or supermarkets that sell essential ingredients for preparing Asian dishes at home.

While it may seem like any other food delivery platform on the surface, it has a distinct characteristic that gives it a competitive advantage. To stand out in the market, this food delivery company has kept its focus on serving a niche audience—people who love Asian food.

Wouldn’t it be nice to explore its business model? Let’s do it through the business model canvas, a tool that will help us dissect and understand the various elements of the HungryPanda business model.

Key Partners

• Customers: End users who like eating authentic Asian food and are looking for a reliable food-ordering platform.
• Merchants: Restaurant and grocery store owners who offer ready-to-eat Asian food or ingredients for Asian dishes.
• Delivery Men: People who want to work as full-time or part-time delivery service providers for the platform.
• Businesses: Food businesses that want to advertise their outlets on the platform through its in-app advertising services.
• Investor: Fund providers who wish to invest in a food delivery company that is rapidly growing around the world.
• Legal Advisors: Legal service providers who ensure the company’s policies are aligned with food-related regulations in its service regions.
• Technology Providers: Web and app developers who take care of the company’s technology platform.

Value Proposition

Value Proposition for Customers

• The platform offers a wide variety of Asian food and grocery items, fulfilling customers’ demand for Asian cuisine.
• Also, buyers can receive their grocery items and food delivery at their doorstep without visiting restaurants or supermarkets.
• The exciting deals and discounts on food items allow customers to save money while satisfying their cravings.
• The platform’s multiple payment modes allow customers to choose their preferred payment methods for their orders.

Value Proposition for Merchants

• The platform offers a wide range of tools, enabling restaurants and supermarkets to manage their orders without hassle.
• Restaurants and grocers can leverage the platform’s wider market coverage to enhance their reach and drive more customers.
• The online platform offers an opportunity where food vendors can boost their business on a digital platform.

Value Proposition for Deliveryman

• People who want to work as delivery partners for the company can have a lucrative earning opportunity.
• The platform offers competitive service fees, allowing delivery partners to generate a profitable income stream.
• The platform’s seamless registration process makes onboarding easy, enabling delivery partners to start their job in just a short span of time.

Key Activities

• One of the prominent activities the company has to carry out is overseeing deliveries and ensuring everything runs smoothly.
• It also collaborates with merchants in order to expand its business to help customers find almost every Asian food or grocery store in their city.
• To meet the increasing order demands, it onboards delivery professionals who carry the food parcels to customers.
• The food-ordering venture regularly performs platform maintenance activities to remove glitches that may hinder customers’ experience.
• The company also engages in sales and marketing activities to promote its platform and boost customer acquisition.
• The food delivery firm always seeks funding in order to meet financial needs and amplify business growth.
• The company also looks for opportunities to serve more customers by expanding its business in other cities and countries.

Customer Segment

• People who love to eat Asian food.
• Home diners who like the convenience of ordering food online.
• Grocery shoppers who want to buy Asian food ingredients.
• Restaurants that want to leverage an online platform to sell their Asian dishes.
• Grocers who wish to extend their reach with a reliable grocery delivery app.
• People who want to earn income by offering delivery services.

Customer Relationship

• The company is active on various social media channels, where it shares content that resonates with its target audience.
• The company’s 24×7 customer service allows its users to access assistance whenever they need it.
• It also employs a rating system where users can provide positive or negative feedback about its services.
• The exciting discounts and offers allow users to access Asian food and grocery items at very affordable prices.

How HungryPanda Makes Money: A to Z About Its Revenue Streams

The company’s revenue has taken a major leap since its launch. In 2024, this Asian food delivery giant achieved profitability while maintaining over 30% annual revenue growth, establishing itself as a competitive company in the global food delivery industry.

Its skyrocketing growth can be attributed to its diverse revenue model. It employs various channels that amplify its profitability and growth in the market.

To get a better idea of how HungryPanda makes money, we have noted down some of the significant revenue streams of the company. Let’s take a look.

Commissions

Order commissions constitute one of the major income streams in the HungryPanda revenue model. The company takes a small revenue percentage from restaurants and supermarkets that receive orders from its platform. This commission-based monetization method creates a consistent revenue stream, allowing the company to stay profitable.

Delivery Fees

Another significant revenue stream for this Asian food delivery platform is the delivery fees that are charged to customers for bringing their food or grocery items to their doorsteps. The amount of delivery fees may vary depending on the order size and distance.

Advertisements

The company also generates revenue through advertisements. It leverages its platform as an advertising space where brands can promote their products to the company’s targeted user base. This targeted marketing allows brands to boost their businesses, driving a higher ROI.

Membership Program

The subscription-based membership program is another income stream for this company. As part of this program, the company charges recurring fees, and in return, it offers lucrative customer benefits like free deliveries, exclusive discounts, and priority services.

Competitive Advantages of HungryPanda

The HungryPanda business model leverages various strategies that provide a competitive edge, positioning it as the largest overseas Asian food delivery platform in the global food delivery market. Let’s explore some of the prominent competitive advantages of this globally acknowledged meal and grocery platform.

Specialization in Asian Cuisine

The company’s niche market offering gives it a major competitive edge. Since it is only focused on providing Asian food and grocery items, it caters to a specific audience who is interested in Asian cuisine. With this strategy, the food delivery brand positions itself as a reliable marketplace for sourcing Asian food items.

Feature-rich Technology Platform

For any business engaged in online food ordering, its food delivery app features play a significant role in making or breaking the user experience. Keeping this fact in mind, HungryPanda has crafted a feature-rich platform that offers a wide range of functionalities designed to offer a user-friendly experience to its customers.

Wider Market Coverage

This food delivery app has a widespread presence in multiple cities and countries around the world, helping it set a strong foot in the global food delivery market. Its extensive market coverage allows it to serve a larger customer base and offer efficient delivery services to a wide range of regions.

Network of Asian Restaurants & Supermarkets

The company has built a strong network of local Asian restaurants and supermarkets that allows it to provide various food items. Moreover, it also has a large delivery team across its service towns that delivers food parcels to customers within a few minutes, allowing customers to get their favorite food right at their doorstep.

Customer Loyalty & Retention

This Asian-only food and grocery delivery app serves customers’ specific demands, positioning itself as a platform designed for Asian cuisine. This focused market factor has made it a go-to place for customers who like Asian food, making them recurring loyal fans of the platform.

Concluding Thoughts

Despite the crowded food delivery sector, this Asian food delivery platform has found a top place by being a niche market player. The HungryPanda business model is designed to meet demands for Asian food worldwide, connecting customers with restaurants that serve this delicious cuisine.

The company has proved that anyone can easily sail through a competitive market if they have the right business model by their side. If this business analysis has inspired you to take a plunge in the food delivery industry, make sure you start with a robust app like HungryPanda that streamlines your business operations and ensures a smooth user experience.