In response to the evolving post-pandemic dining preferences, Singapore-based food delivery giants, Grab and Foodpanda, are venturing into the dine-in market. With a keen eye on the rising demand for eating out, Grab has initiated trials of its dine-in feature in 15 cities across Singapore, Thailand, and Indonesia. This innovative addition enables users to enjoy up to 50% discounts by pre-purchasing dine-in vouchers.
Through the app, patrons can conveniently access restaurant menus and reviews, place orders, and make payments via a QR-based system. Moreover, Grab’s integrated services extend further, allowing users to seamlessly book rides to reach their preferred dining destinations. This strategic move showcases the apps’ commitment to adapt to changing consumer habits and broaden their offerings in the ever-competitive food services industry.
In addition to their current expansion efforts, the company has outlined further plans to launch their services in Malaysia, the Philippines, and Vietnam. Notably, Foodpanda took the lead in Singapore’s food delivery scene by being the pioneer in introducing dine-in features back in 2021.
Foodpanda’s Dine-in service has now expanded its reach to encompass multiple countries, including Singapore, Thailand, the Philippines, Malaysia, Hong Kong, Pakistan, and Bangladesh. Since 2022, more than 8,000 restaurants in these regions have actively participated, providing attractive dine-in discounts ranging from 15% to 25% to their customers.
“At a recent media briefing, Jakob Sebastian Angele, the Asia Pacific CEO at Foodpanda, revealed that they initiated discussions about future plans during the pandemic. He emphasized their foresight in acknowledging the existence of life beyond the pandemic even at that time.”
According to Angele, Foodpanda perceives an enormous potential in the dine-in segment, which could become a substantially significant aspect of their business. Presently, food delivery remains the primary focus for Foodpanda, closely followed by grocery delivery.
In a recent development, Foodpanda unveiled a strategic partnership with TabSquare, a restaurant solutions provider based in Singapore. Through this collaboration, they aim to streamline food ordering processes by implementing digital menus, QR-based ordering, and other innovative features. It’s worth noting that TabSquare was acquired entirely by Foodpanda’s parent company, Delivery Hero, in 2021. This move signifies Foodpanda’s commitment to enhancing their offerings and embracing technology to meet the evolving demands of the food service industry.
During June, AirAsia Food, a prominent food delivery service, made its foray into the dine-in sector through a partnership with the restaurant reservation platform, eatigo. In an exciting development, the service introduced a unique queuing feature in Thailand, enabling users to book riders who will queue up on their behalf at restaurants, ensuring a seamless dining experience. This move demonstrates AirAsia Food’s commitment to diversifying its services and catering to the diverse needs of its users in the ever-competitive food delivery landscape.
During the launch of GrabFood’s Dine-in service, Tay Chuen Jein, who oversees deliveries for Singapore at Grab, expressed that providing these discounts was aimed at making dining out more accessible to customers. He emphasized that the initiative not only helps users explore new dining options but also ensures affordability, as numerous merchant-partners offer alluring dine-in vouchers that can be conveniently purchased through the app. Tay’s statement was included in a press release to highlight Grab’s commitment to enhancing the dining experience for its users and supporting their culinary adventures.
According to Jonathan Woo, a senior analyst at Phillip Securities Research, as dining out expenses rise due to higher inflation, consumers are increasingly seeking ways to save costs. He emphasized that finding deals and enjoying a good meal at a discounted price can be an incredibly satisfying experience for customers. This trend reflects the growing importance of affordability and value in the dining industry, prompting people to seek out attractive offers and promotions to make their dining experiences more enjoyable and budget-friendly.
According to Jonathan Woo, Grab can achieve “indirect incremental revenue” through its dine-in services. This is accomplished by earning commission fees for each dine-in voucher purchase made by users. Woo highlighted that focusing on increasing monetization from existing customers is a highly cost-effective strategy, simultaneously benefiting the Food and Beverage (F&B) merchants by raising awareness about their offerings. This approach allows Grab to optimize its revenue streams while providing valuable support to its partner restaurants in the process.