Foodpanda Food delivery company, an Ola owned company, announced its acquisition of Mumbai-based, cloud kitchen firm Holachef. The acquisition marks Foodpanda’s entry into the cloud kitchen space where rivals Swiggy and Zomato already has their place.
As part of the acquisition, Foodpanda will take over Holachef’s business including its kitchens, all the equipment, as well as bring on board the company’s employees. Holachef’s founders will join Foodpanda’s leadership team. Foodpanda also plans to launch its own brand of food products in the market with different categories.
“At Foodpanda, we are committed to building for unique local tastes and palate choices of the Indian consumer. Through the Ola platform, we also have unmatched access to over 150 million customers and an understanding of their preferences. We aim to build India’s largest cloud kitchen network that will be a major step in further elevating the food experience for our customers” said Pranay Jivrajka, CEO of Foodpanda India.
Foodpanda takes and delivers over 300,000 orders per day from 25,000 restaurant partners across the country with a food delivery network of 125,000 delivery partners.
Co-founder of Holachef Saurabh Saxena said, “Our mission with Holachef is to serve incredible food experiences to customers through kitchens with the highest quality and hygiene standards. We are thrilled to be part of Foodpanda’s and Ola’s passionate team, that is truly changing the food experience for a billion Indians”.
What is the reason for foodpanda to make an entry into the cloud kitchen market?
What is cloud kitchen?
Cloud Kitchen is a virtual kitchen which is only for online food ordering and delivery. There is no restaurant present in a particular area still restaurants can prepare their meals in these kitchens and deliver food orders to their customers using one of the services like Foodpanda, Swiggy or Uber eats or even start with their own online delivery platform like what Domino’s does.
Swiggy has already started working on this model in Banglore and expanding in other cities without delay. Zomato has also taken the lead in this market and now Foodpanda’s acquisition makes it clear that cloud kitchen is going to be a major market in the food industry economy.
Cloud Kitchen is helping restaurants reach customers even in those areas where they don’t have a restaurant of their own.
Cloud Kitchen’s rental is much cheaper than renting a place for a restaurant with a dining area which has to be at a prime location of the area.
No need to hire waiter and restaurant managers, just a few cooks will do the job. Also, no interior designing and no maintenance chargers as compared to running a restaurant. This services can be provided 24/7 giving it an advantage of utilizing resources at all times.
It is estimated that demand for online food ordering and delivery services will double in coming years as the market is changing and population growth is on the rise creating demands for everything.
It is easy to understand that food is a basic need of a human being and companies are finding ways to satisfy this need and at the same time make revenue from this.
As companies like Foodpanda and Swiggy are changing the trend of the food industry, making customers order food at their doorstep that is way too convenient for the customer. Why would you expect anyone to leave the comfort of their home and go out after getting ready just for a meal or a snack? This is the reason why the concept of Cloud Kitchen could be a game changer in the upcoming market.
Check here to read more about Swiggy’s CloudKitchen
Multirestaurant Systems Provides FoodPanda Clone Software that you can use out of the box to setup a system similar to foodpanda along with cloud kitchen.