foodpanda announces new partnership, but are they really the leader?

foodpanda has just announced their partnership with Picky. But are they really leading the race?

Shortly after it confirmed a merger with Singapore-Dine, online food delivery platform foodpanda has just announced that it is collaborating with dining app Picky.

Founded by the same people behind the successful movie booking app Popcorn, Picky helps users find places to eat, and now, these users can also order meals from their preferred restaurants via foodpanda easily.

You might remember Picky: the food discovery app which is backed by a six figure private investment. Users can browse the list of foodpanda’s restaurant partners under the “Eat-at-home” tab on Picky, and click the delivery button to get seamlessly linked to foodpanda’s mobile site.

Earlier last week, Rebate Networks-backed DealGuru spins out its new Asian food delivery business, effectively challenging foodpanda head on for the online food delivery market space. The new food delivery subsidiary “Food Runner” operates the Room Service Deliveries brand, which claims to have more than 50,000 registered users and delivers several million dollars’ worth of restaurant food annually.

Read also: DealGuru’s response to foodpanda: a newly rebranded Food Runner

We also noted on the article that foodpanda currently has delivery services from 101 restaurants. Room Delivery Services, on the other hand lists 70 restaurants on their website.

Is the food delivery space that lucrative, and will it have a big enough pie for both foodpanda and Food Runner? Having operations in both Singapore and Malaysia, Food Runner will be expanding to other parts of Southeast Asia, a food delivery market that Michael Brehm of Rebate Networks expects will hit US$390 million by 2015. However, foodpanda is already strengthening its Southeast Asia foothold by establishing presence in five countries in the region, namely Singapore, Malaysia, Vietnam, Thailand and Indonesia.

foodpanda’s strategy: expanding discovery channels through strategic partnerships

Locally in Singapore, it seems like foodpanda is actively beefing up its discovery channel through partnerships with other existing players. This collaboration with Picky is the third new partnership after Singapore-Dine and RedMart. Breaking down the channels, Singapore-Dine is an existing food delivery online platform and RedMart has extensive experience in the delivery and logistics space. Picky now fits the “mobile discovery” channel for foodpanda, though prior to this partnership, foodpanda also launched its own mobile app and teamed up with Singapore mobile loyalty app Perx to expand its reach.

With other existing food discovery platforms out there such as Burpple or Yelp who have been around longer, these platforms would probably have more data points. So why Picky? Lee Ken Ming, CEO and founder of Picky shared in the press release: “Our recommendation service represents a complement to foodpanda’s food delivery service and vice versa, enabling users not only to decide on where to eat, but to also order and have their meals delivered to their home or office. All customers will benefit from the synergy of this partnership.”

Chinmay Malaviya, the Singapore country manager for foodpanda, told us that there will also be a revenue share between foodpanda and Picky for every successful referral. “I am excited that foodpanda expands its market leadership in Singapore with a further strong partnership. With this cooperation, two successful startups join forces to make Singaporeans’ lives much easier.”

Singapore food tech space land grab: No clear winners yet

Taking a closer look at the food tech space in Singapore, we are clearly seeing several players shaping and leveling the playing field. foodpanda is actively forming their congregation of food delivery networks by partnering with strategic partners as well as active mergers. dealguru gobbled up Asian Food Networks and launched their whole new Food Runner subsidiary. On the flip side, the delivery arm of HungryGoWhere, Gourmet To Go (formerly known as “HungryDelivery“) along with their sister sites are just going about everyday normally. Yelp is actively building up their community of users in Singapore, and Burpple is set to unveil a whole new feature in two days’ time: both have yet to team up with any major players yet. Not forgetting other key players especially those in the restaurant reservation space such as Chope and Reserve.it (which partnered with HungryGoWhere).

While both foodpanda and Food Runner claims to be the leader in the food delivery space, Burpple, Yelp, HungryGoWhere, and Chope can still level the playing field for any players, even new entrants. Although foodpanda recently raised more than US$20 million funding from a group of investors, these players would still give foodpanda a run for its money in Singapore.

Ever wonder why everyone is chasing the money around food? It’s simple, really: as Dave McClure puts it: It’s kind of a big boring industry, but a lot of people eat.

Read also: Dave McClure hungry for food tech, 500 Startups heading east soon

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