KUALA LUMPUR: foodpanda Malaysia is looking to increase vendor onboarding by 50% this year as price competition intensifies in the consumer space.
Managing director Tan Ming Luk said the company has doubled its investments to grow the business development team to support the increase in vendor partnerships.
“We’re onboarding 50% more vendors month-to-month this year compared to last year. What’s different this year is our pace, we’re no longer growing gradually. We’re accelerating,” he told reporters at a media lunch today.
Tan said the goal is for customers to find not only the food they want, but also essential items such as groceries when they open the app.
“That’s why this part of the business never stops. We’re constantly acquiring new vendors to join the platform,” he said.
On the expanded SST that is set to kick in on July 1 with 5%-10% sales tax on selected, non-essential goods, Tan doesn’t think the SST expansion will have a major impact, at least not in the short term.
“Our performance reflects broader trends in the offline food industry, which is expanding. Since Covid, we’ve noticed that food prices have gone up across the board. But despite the price increases, our business has continued to grow.”
Tan shared that consumer spending activity on the platform remains strong.
“The average transaction value and order frequency have increased slightly – 5% to 6% – so we’re seeing people spend more,” he said.
He attributed this to a wider variety of cuisines and more attractive promotions available on the platform compared to last year.
“That could be a factor as well,” he added.
Tan said affordability, vendor growth, and customer experience are foodpanda’s three main focuses for 2025.
“Since we operate in a platform business, customers will always compare prices, so we need our vendors to run attractive campaigns and promotions. We have to make sure our prices remain very competitive.”
Foodpanda is strengthening customer experience by integrating AI to power personalised recommendations and search results based on user behaviour.
“Every time you open the app, you may notice the carousel looks different. That’s the AI at work, adapting to your preferences and behaviour.”
On the logistics side, Tan said AI is used to optimise delivery routes based on traffic, weather, and restaurant-specific preparation times.
“For instance, a McDonald’s outlet in Nu Sentral may need 10 minutes to prepare an order, while one in Mid Valley may need 15. So we optimise down to the outlet level, not just by brand.”
Tan shared its quick commerce business (supermarkets, pharmacies, retail partners) now contributes around 20% of foodpanda’s overall business.
“For this year, we have 26 Panda Mart locations, and we’re not expanding further. Panda Mart is our own brand, but instead of adding more outlets, we’re focused on growing the business by expanding our product assortment,” he said.
“Currently, we carry about 3,000 items, and we’re aiming to increase that to 5,000. We’re identifying gaps by analysing platform search history.
“For instance, if many users search for ‘dental soap’ and we don’t have it, we’ll add it. That’s how we use data to support growth.”
Tan said its prices tend to be slightly higher than large grocery players such as Lotus’s because they have the scale to offer better margins.
“We’re working to keep our prices competitive. This is also why food-panda launched our own white-label house brand.”
“We’ve invested heavily in R&D to create affordable versions of frequently ordered items like soaps, wipes, and snacks, making everyday essentials more accessible to our customers.”
