Muntaqa Peracha is the Chief Executive Officer of foodpanda. He is a graduate in Computer Science from Georgia Institute of Technology and has spent the last 15 years developing, deploying, managing, and selling large-scale digital solutions for giants like IBM and NCR to local technology conglomerates. He has a passion for solving complex problems from access to banking and healthcare at the bottom of the pyramid to digitizing last-mile deliveries.

Following are the edited excerpts of a recent conversation BR Research had with him:

BR Research: Post-pandemic, how has the food delivery landscape evolved in Pakistan, and how is Foodpanda adapting to these changes?

Muntaqa Peracha: After the pandemic, Pakistan’s food delivery landscape witnessed a rapid evolution. Online food ordering has transformed as people value efficiency and convenience. This has led Foodpanda to expand its service offerings, fine-tune the technology, and build a growing, robust network of restaurant partners to ensure excellent, hassle-free customer experience at any time.

BRR: What is Foodpanda doing to stay competitive and affordable amidst growing inflation and unfavorable economic indicators? Can you describe some of the key challenges that Foodpanda is facing in Pakistan today and what measures you are taking to handle/manage those?

MP: The challenging economic landscape has made things difficult across all sectors - and we are no exception. However, to remain competitive and drive affordability, we work closely with our restaurant partners, suppliers, HomeChefs, etc to provide competitive pricing and optimize our operations for maximum efficiency. It’s a delicate balance to strike, but we’re committed to ensure accessibility to everyone, even in challenging economic times.

One of the major challenges we face is ensuring timely and efficient food delivery, particularly in a country known for traffic congestion and unpredictable weather conditions. To address this challenge, we have implemented several measures. Firstly, we use advanced route optimization technology to plan delivery routes, increasing efficiency and minimizing delays caused by issues such as traffic congestion. Additionally, we monitor weather forecasts closely and take necessary steps to mitigate the impact of bad weather on delivery times (rain covers, proactive customer engagement, incentives to riders to compensate their lost earnings, etc.)

Another significant challenge is managing a large fleet of riders and ensuring adequate training, licensing compliance, and continued focus on customer excellence. To tackle this, we have invested in rider training programs to enhance their skills, and regular campaigns with government entities, to ensure full compliance with laws & regulations - in a bid to ensure a smoother delivery experience.

In a crowded market with numerous food delivery options, retaining customers is an ongoing struggle. To address this challenge, we focus on customer-centric solutions. We have a dedicated customer support team that promptly addresses customer concerns related to late deliveries or canceled orders. We also offer enticing loyalty programs, discounts, and promotions to incentivize customer loyalty and keep them engaged with our platform.

BRR: Over the years, Foodpanda has diversified its range of services. Could you please provide an overview of the different services that Foodpanda is currently offering in Pakistan?

MP: Absolutely! We’ve got a bunch of exciting services to talk about. First and foremost, there’s our fantastic delivery service, where we bring the best eats from local restaurants straight to your door. But we’ve also got some cool additions.

A few years ago, we jumped into the grocery delivery space with Pandamart. Need some household essentials? We’ve got you covered, and we make sure it gets to you fast. And speaking of fast, our quick-commerce services are a game-changer, giving you quick access to those must-have items. If you’re a regular, you might want to check out Pandapro. It’s a subscription service that unlocks special offers and discounts just for you. And for our business partners, we’ve got B2B solutions that help with all sorts of things like planning and managing capacity.

Plus, we’ve got Pandago, which is like your instant pick-up and delivery “buddy” for packages. And if you like dining out, our Dine-In feature lets you enjoy sweet deals at your favorite restaurants.

We also make it a point to listen to our customers, and most of them wanted access to the local shops nearby in the comfort of their homes, so we collaborated with the local shops that fall within the delivery radius and put them on our app. Not only did this provide our customers with what they wanted but also bolstered the local economy.

And we’re not stopping there. We’re exploring digital payment and financial services to make your life even easier. So, we’ve got a lot going on to make sure you get what you need when you need it. We’re all about convenience!

BRR: Please let us know of recent innovations or technology investments that Foodpanda has made to enhance the customer experience and service?

MP: We have taken a versatile and diverse approach to enhancing the customer experience through technological innovation. We have improved the user experience to ensure that the platform is as user-friendly and efficient as possible. In addition to the growth of our quick-commerce, we have also expanded our cloud kitchen offering. At present, we are operating seven cloud kitchens around the country to create opportunities for aspiring food entrepreneurs with limited capital and resources to start a business.

BRR: As the CEO, what is your vision for Foodpanda Pakistan, and how do you plan to lead the company in realizing it during these challenging times?

MP: Our vision for Foodpanda Pakistan is of continuous evolution. We aim to be a tech-driven lifestyle companion. We want to lead in innovation and customer-centric solutions that allow our users to fulfill their needs (and cravings!) and accomplish daily tasks seamlessly through the same platform.

BRR: How has Foodpanda integrated sustainability into its business model?

MP: Sustainability is a core pillar of Foodpanda. The future of the planet and the environment are issues that affect everyone and are certainly a priority for us at Foodpanda. We have undertaken a number of key initiatives such as powering a number of our panda marts with solar energy, piloting the use of electric bikes, optimizing our delivery routes using AI, etc. We also use eco-friendly, woven cloth bags at our solar-driven marts to minimize our environmental impact. Furthermore, to further reinforce our broader sustainability commitment, Foodpanda is giving customers the choice to “opt-out” of plastic cutlery when ordering from their restaurants.

Additionally, as part of our CSR campaigns we regularly engage in local initiatives like tree plantation drives that promote a greener, healthier environment for everyone.

BRR: What advice would you offer to aspiring entrepreneurs looking to enter the food delivery or tech industry in Pakistan, based on your experience leading Foodpanda?

MP: For the entrepreneurs in the food delivery or tech industry in Pakistan, my advice is simple. Firstly - embrace innovation. Second, focus relentlessly on enhancing the customer experience (which is a key pillar of any business). Third, build strong and mutually beneficial partnerships that nurture your idea’s growth. Fourth, expect challenges, and let them fuel your persistence. Lastly, quality and efficiency should always be your guiding principles. Pakistan’s dynamic market offers abundant opportunities to explore this.

BRR: How is Foodpanda optimizing costs in the current environment? Do you foresee any impact on the workforce?

MP: Cost optimization is an ongoing priority for Foodpanda. But we are equally committed to our workforce. Our approach is twofold: to operate efficiently and to preserve and create economic opportunities. Our growth trajectory in Pakistan is extremely promising. We see a positive outlook for our organization/employees, network of gig workers and entrepreneurs.