Grab and Foodpanda, two Singapore-based food delivery services, are approaching the dine-in market as people start dining out again after the epidemic. In 15 cities in Singapore, Thailand, and Indonesia, Grab is presently testing its dine-in functionality, which allows customers to pre-purchase dine-in vouchers at discounts of up to 50%. The function enables QR-based ordering and payment while also enabling access to restaurant menus, reviews, and booking transportation to restaurants for app users.
Contrarily, Foodpanda was the first Singaporean meal delivery service to provide dine-in options in 2021. Since then, a number of nations, including Thailand, the Philippines, Malaysia, Hong Kong, Pakistan, and Bangladesh, have made the Foodpanda Dine-in function accessible. In these nations, over 8,000 restaurants have begun to provide dine-in specials ranging from 15% to 25% off.
According to Foodpanda’s Asia Pacific CEO, Jakob Sebastian Angele, the firm sees enormous potential in the dine-in market, which has the ability to contribute significantly to their revenue. Despite entering the dine-in sector, food delivery still accounts for the majority of Foodpanda’s revenue, followed by grocery delivery.
Foodpanda announced a partnership with Singapore-based restaurant solutions vendor TabSquare to further improve the dine-in experience. The collaboration intends to automate meal ordering procedures using, among other things, digital menus and QR-based ordering.
Customers have responded well to Grab’s dine-in service, which provides alluring dine-in coupons via the app to lower the cost of dining out. These dine-in services are expected to bring in additional income for the business via commissions on each voucher purchase.
With a predicted compound annual growth rate (CAGR) of 13% through 2025, researchers expect that food delivery growth may moderate as the business adapts post-pandemic. However, industry leaders in food delivery like Grab and Foodpanda are actively broadening their offerings to keep up with shifting customer preferences and get into the lucrative dine-in sector.
Although these expansions are common in the sector, the move into the dine-in market not only benefits restaurants in terms of increased business but also gives food delivery apps a chance to increase their profit margins, particularly given that dine-in transactions do not incur delivery fees. Grab and Foodpanda are both eager to bolster their positions in the food delivery and dine-in industries in response to escalating competition and changing customer preferences.