Hard roads ahead for foodpanda as Zomato plans to enter food ordering service
Zomato is expanding the business at a very fast pace and this announcement should not be a surprise. Zomato is already a leader in restaurent listings. Zomato has highest listings and it would not be a big task for Zomato to partner its advertisers for food ordering listings.
Foodpanda on other hand is only limited to food ordering services and already suffering due to its customer service. Foodpanda is a very bad name on internet.
One user posted his bad experiance of ordering food on one of the most read site by young entrepreneurs.
What you think of Foodpanda vs Zomato?
Zomato is number one in listings and is going to rule the food ordering niche too. Foodpanda has double tasks, one is adding restaurents as partners and on other hands managing the customer support services.
Zomato is already an established brand having millions of listings and is prefered by restaurents for advertising.
I don't feel that people will prefer foodpanda over Zomato. Zomato have huge funds to invest in customer services. They have lot of restaurent to partner, so it is very easy for them to ban any restaurent defaulting the order or supplying bad quality food. But same is not case with foodpanda since foodpanda is strugling to add restaurent partners.
Even on revenue side Zomato is earning more than foodpanda, valuation of Zomato is higher and funding will not be a big issue for Zomato.
Question that needs to be addressed by Foodpanda are:
- Can Foodpanda match the marketing of Zomato?
- Does foodpanda have enough funds to invest in customer support and brand establishment?
- Does foodpanda have authority or bandwidth to ban the bad restaurents?
- Can Foodpanda provide discounts that Zomato will provide? Discount is best marketing tool used by most of E-Commerce websites.
- What Foodpanda have in its kitty to erase the bad memories people had by ordering food on its portal?
- Does Foodpanda have enough funds to invest in its logistics system?
The next trend in the ecommerce industry is the food ordering online and with the combination of foodpanda deals the are prices are most economical.