CHAPTER I

INTRODUCTION

Background of the Study

The food delivery industry like Food Panda, has witnessed significant

transformations globally, driven by technological advancements and changing

consumer behaviors. In a study conducted by McKinsey (2020), it was revealed

that the market for food delivery worldwide amounts to €83 billion, representing

1% of the total food market and 4% of food sold through restaurants and fast-

food chains. This sector has matured in many countries, with an estimated

annual growth rate of just 3.5% for the next five years.

Two distinct types of online platforms have emerged to cater to the

evolving demands of consumers in the food delivery space: aggregators and new

delivery players. Aggregators, which have been around for approximately 15

years, provide access to multiple restaurants through a single online portal,

allowing customers to compare menus, prices, and reviews conveniently. On the

other hand, new delivery players, introduced in 2013, have built their logistics

networks to offer delivery services for restaurants that lack their own drivers.

The rise of digital technology has reshaped consumer expectations in the

food delivery sector. Consumers now seek the same level of convenience and
 2

transparency they experience in other online activities when ordering

meals. This shift has led to an increasing demand for online food delivery

services that offer seamless ordering processes and efficient deliveries. As a

result, both aggregators and new delivery players have expanded the overall

market by providing innovative solutions that enhance the customer experience.

The dynamics of the food delivery industry are influenced by various

factors such as technological penetration, funding levels, and consumer

behavior. Understanding these dynamics is crucial for assessing the

effectiveness of partnerships between platforms like Food Panda and local

businesses in countries like the Philippines. By analyzing market trends,

consumer preferences, and operational strategies within this context,

researchers can gain valuable insights into how such partnerships impact

business sustainability, customer satisfaction, and overall market

competitiveness

The increasing popularity of food delivery services like Food Panda has

transformed the way people order food. This study aims to investigate the impact

of Food Panda's partnership with local businesses. The partnership between

Food Panda and local businesses can have economic implications. The study

analyzes the effects on employment, revenue generation, and overall economic

growth in the local community. The research investigates the challenges faced by
 3

local businesses in partnering with Food Panda. It examines any potential

drawbacks, such as increased competition, pricing concerns, or operational

challenges. We choose this study because it is one of the most popular delivery

app nowadays, and we also want to know how it really helps businesses.

Review of Related Literature

This chapter presents the related literature and studies both foreign and

local sources. This includes the ideas, formulated thesis, generalizations on

conclusions, methodologies, and others. Those that were included in this chapter

help in familiarizing one with relevant and similar information to the present

study.

Foreign Studies

Based on, Uppaluri, S. (2019). The sources highlight Food Panda's

marketing strategies, emphasizing digital marketing, partnerships, and branding.

They discuss leveraging email, social media, and mobile marketing, as well as

tie-ups with local events to boost sales. The evolution from performance to

influencer marketing showcases adaptability. QR codes, loyalty programs, and

engaging social media content enhance sales and customer loyalty. Insights from

CEO Jakob Angele stress innovation and adaptability for scaling up in the

competitive food delivery sector.

 4

Zarif, F. (2022). Highlights the challenges faced by Food Panda during the

pandemic and the company's efforts to adapt to the changing market conditions.

The article mentioned that Food Panda experienced a significant decrease in

business during the first half of 2020 due to the lockdowns and the closure of

many restaurants.

According to, Majid, S., & Tanveer, F. (2023). The marketing strategies of

Food Panda and Jovi in Pakistan are influenced by various factors, including

regulatory environment, competitive landscape, consumer behavior, and socio-

cultural context.

Local Studies

Marj, Casal H. (2020) stated that in the Philippines, there are

several food delivery apps to choose from, and we are fortunate to

have this variety. One of the most prevalent options is Food Panda,

known for its riders dressed in pink long-sleeved shirts and carrying

pink insulated bags, a common sight in restaurants and on the roads.

We are now in the era of on-demand services, which includes the

food industry. With just a few taps on my phone, I can conveniently

satisfy my cravings while waiting for my order to arrive.

 5

According to Marogy, D. (2021), the online delivery service

foodpanda Philippines has achieved an estimated 70% market share

among food delivery mobile apps in the country following a surge in

demand last year.

Based on, Jacinto, P. (2024) Leading online food and grocery

platform Food Panda unveiled its PandaPatrol: Hub on Wheels, a

foodpanda-branded bus that will visit several provinces and cities

nationwide to connect with its Ka-panda delivery partners. The pink-

colored coaster will be making stops at select gas stations and will

include fun and exciting games and activities that Ka-panda partner

riders, bikers, e-scooters, and walkers can enjoy.

Objectives of the Study

This study aims the following:

1. To identify the advantages and disadvantages of availing Food Panda.

2. Determine the effects of Food Panda partnership with Local businesses.

3. To draw significant implications based on the research findings.

 6

Significance of the Study

The purpose of this study is to determine the advantages and

disadvantages of availing Food Panda, and how it help their business. We know

how partnering with Food Panda helps local businesses grow by reaching more

customers and increasing their visibility.

The conduct of this study will let us understand how the partnership

improves the convenience of ordering food for customers, making their

experience better and etc.

Business owners

This study will let the business owners know how partnering with Food Panda

can potentially increase their revenue. It allows them to assess the impact of this

partnership on their sales and overall financial performance. By partnering with

Food Panda, they can tap into a larger customer base. The study will help them

understand how this partnership can attract new customers and increase their

visibility in the market.

Customers/ Consumers
 7

They will benefit from this study because they will understand how the

partnership between Food Panda and Local businesses improves the

convenience of ordering food. It allows them to access a wide range of

restaurants and food options from the comfort of their homes or workplaces.

Future Researchers

Future researchers can use the findings of this study as a basis for comparative

analysis. They can compare the effects of Food Panda's partnership with local

businesses to partnerships with other food delivery platforms or explore the

effects of similar collaborations in different sectors. This comparative analysis

can provide valuable insights into the variations of partnership dynamics.

Scope and Delimitations

The focus of this research is the effects of the partnership between Food

Panda and Local Businesses. This study will be conducted at Brgy. Sta. Maria

and Pasonanca Zamboanga City area where small businesses are located. It will

be conducted with the small business owners/ managers that are partners of

Food Panda. Gathering of data will be done through an interview. Furthermore,

this study is premised to the effects of the partnership between Food Panda and

Local Bussineses.
 8

Operational Definition of Terms

To have a better and clearer understanding of this study, the following

terms are defined operationally.

Food Panda

Food Panda is an online food and grocery delivery platform, It is currently the

largest food and grocery delivery platform in Asia. They are the partners of the

Business owners.

Partnership

A partnership is an arrangement where parties, known as business partners,

agree to cooperate to advance their mutual interests. The partners in a

partnership may be individuals, businesses, interest – based organizations,

schools, governments or combinations.

Local Business
 9

A local business is one that sells its products and services to consumers in its

own town or city. Any company that provides goods or services to a local

population is considered a local business.