Online food delivery platform Foodpanda plans to double the gross merchandise value of its business in Pakistan within three years as the country’s economy stabilizes, said local head Muntaqa Peracha.

Foodpanda, owned by Germany’s Delivery Hero SE, operates in 35 Pakistani cities, with as many as 10 million orders placed annually.

Pakistan’s online food delivery market is projected to reach US$2.4 billion in 2024, with expected annual revenue growth of around 8%, according to Statista Market Insights.

The company has faced challenges from record inflation, which forced several competitors to exit the market, including the local unit of Careem and Airlift Technologies.

Pakistan’s economic outlook has improved after loans from the International Monetary Fund and an improved credit rating.

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🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Survival through economic turbulence creates lasting competitive advantages

Foodpanda’s ability to weather Pakistan’s record inflation while competitors like Careem and Airlift exited the market demonstrates how operational resilience during economic downturns can reshape competitive landscapes.

An independent study by LUMS reveals Foodpanda generated $1.2 billion in economic impact during FY 2023-2024, facilitating PKR 75 billion in restaurant GMV and driving 100% income growth for over 13,000 partner restaurants1.

This performance during Pakistan’s most challenging economic period, when inflation drove multiple competitors out of business, shows how companies that maintain operations during crises often emerge with strengthened market positions and deeper ecosystem relationships.

The platform’s survival strategy appears to have paid dividends beyond mere market share, creating a network effect where restaurants and riders became increasingly dependent on the platform during economic uncertainty.

2️⃣ Market projections from emerging economies often prove conservative

Pakistan’s food delivery market growth has consistently exceeded earlier forecasts, suggesting that economic development in populous emerging markets can accelerate faster than traditional models predict.

In 2017, industry projections estimated Pakistan’s food delivery market would exceed $2 billion by 20212. Current data shows the market reaching $2.35 billion this year, with continued 8% annual growth expected.

This pattern of conservative forecasting appears common in markets experiencing rapid digitalization, particularly where large populations, like Pakistan’s fifth-largest globally, combine with increasing smartphone penetration and urban migration.

The underestimation becomes more significant when considering Foodpanda alone now serves 10 million annual customers in just 35 cities, indicating substantial untapped potential in Pakistan’s remaining urban centers.

Recent Foodpanda developments

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