The food and beverage industry has always been fast paced, but nothing compares to the transformation it has undergone in just the last few years. The COVID-19 pandemic has turned the restaurant business upside down, making the images of packed dine-in restaurants and long waits a thing of the past. We now find ourselves in a new age of the F&B industry – the rise of online food delivery.
The online food delivery market in Malaysia has been most recently valued at US$192 million, made up of 6.2 million consumers. It’s only going up from there — the market is expected to grow almost 18% annually. It’s no wonder that food delivery platforms like FoodPanda, GrabFood, Beep, and a growing number of companies are going for a piece of the pie from this booming market, which is projected to reach US$370 million by 2024.
What are Malaysia’s largest food delivery platforms?
The top three food delivery platforms in Malaysia are currently FoodPanda, GrabFood, and Beep. FoodPanda and GrabFood have both had strong market share in other countries for several years, while Beep is a local provider founded in Malaysia in 2020.
Other platforms capturing a growing portion of Malaysia’s food delivery market share are AirAsia Delivery, Delivery Eat, and Oddle.
Finding the Right Food Delivery Platform for Your Business
There are several quality players in the online food delivery space, so choosing which one is best for you can feel overwhelming. Is it better to choose a bigger platform to get the largest reach with an established customer base, or a smaller company that caters more to your individual business’ needs? Here we break them all down for you in an effort to help you answer some of your most burning questions.
Foodpanda is Malaysia’s first food delivery platform and has been the most dominant player in the market since it first entered Malaysia in 2012. In a 2020 study, 75% of Malaysian respondents identified FoodPanda as their food delivery platform of choice.
FoodPanda partners with many restaurants on the platform, so it’s a fairly crowded space. Because they’re well-known for their expansive reach and top-quality food delivery services—operating successfully in more than 85 cities in Malaysia—FoodPanda is one you should keep top of mind when evaluating your delivery platform choices.
GrabFood officially launched their on-demand food delivery in Malaysia back in May 2018. Today, they’re the second largest food delivery service provider. GrabFood features all types of F&B businesses, whether you’re a start-up restaurant or a well-established eatery.
Grab has also launched GrabSupermarket, which is Grab’s first full-sized supermarket in Malaysia. Restaurant partners benefit from Grab’s next-day payment policy which expedites payments for all orders completed on weekdays.
Its delivery areas currently encompass the entire Klang Valley and selected areas across most states, such as Melaka, Kota Kinabalu, Penang, Johor, and Negeri Sembilan.
Beep is a strong contender that was launched as a new entry into the market last year by StoreHub. It started as Beepit.com in March 2020 as a food delivery platform site for F&B businesses that run their own food delivery service through Beep Delivery. In October 2020, StoreHub released the Beep food delivery app, giving consumers the option to order directly from vendors via beepit.com or the Beep app.
What’s so attractive about Beep for businesses? Beep lets merchants keep at least 80% margin no matter which plan they choose. Beep Delivery also helps you deliver to customers that are up to 20km, greatly widening your potential customer case.
AirAsia Food was launched in the midst of the pandemic in May 2020 to help support local small businesses in the F&B industry. Merchants can easily control their menu and prices, and also receive extended delivery coverage of up to 60 kilometres, compared to the 15-kilometre coverage by other food ordering platforms.
AirAsia Delivery is one of the businesses under the airasia.com Asean Super App, so they have the advantage of being part of a larger ecosystem that has over 60 million users who can earn and pay for products and services with their BIG Points.
DeliverEat is an online food ordering & delivery company founded in 2012 by Penangites, whose goal is to bring conveniences to hungry diners by providing a marvellous delivery service. Today, they have over 1,500 restaurants for consumers to choose from, including well known restaurants like Nando’s and Chilis.
Oddle was founded in Singapore but has expanded its operations globally with a presence in 10 countries and with over 3,000 brands using their service. They’re now available in Malaysia in the Klang Valley and Selangor.
How does Oddle set itself apart? Oddle lets merchants avoid sharing commissions by allowing them to organise their own order deliveries.
Oddle currently charges a usage fee (10% for every order placed), delivery fee (only for merchants who request delivery services), and a payment gateway fee (3.4% on total sales for offline orders made through the Oddle mobile app).
Which Food Delivery Platform Will You Go With?
Now that you have a better idea of what Malaysia’s food delivery platforms are and what they offer, you’re in a good position to narrow down which one is best for your business needs. Whether you choose a smaller player with a unique offering, like Oddle, or one of the big players like FoodPanda or GrabFood, your success ultimately comes down to offering amazing food and service that keeps customers coming back over and over again.
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