Foodpanda Malaysia looks to Middle East, South Asia as appetite for halal delivery surges


04/18/2023

Foodpanda Malaysia is exploring opportunities to expand its halal delivery services to the Middle East and South Asia in collaboration with its sister companies under parent company Delivery Hero. This move comes after the successful launch of its specialised halal offering in Malaysia, the country with the global gold standard in halal certification. According to a study by Frost & Sullivan, the halal economy is projected to reach a value of US$4.96 trillion by 2030, driven by increasing demand for halal products from both Muslim and non-Muslim nations. In line with this trend, Malaysia’s government expects the domestic halal market to be valued at US$90.5 billion by 2030.

Foodpanda Malaysia managing director Sayantan Das highlighted the company’s plans to export its Bekal service, saying, “We believe the halal certification process in Malaysia is the gold standard globally and… there is demand for this to be exported out of Malaysia.” Das further revealed that Foodpanda Malaysia was in talks with sister companies to set up similar halal delivery services in the Middle East, Bangladesh, and Pakistan over the next six to twelve months.

The Bekal service, launched in collaboration with Malaysia’s federal Islamic development department (Jakim), provides an end-to-end guarantee that food delivered via the service adheres to the country’s strict halal guidelines. The platform is a natural progression from Foodpanda Malaysia’s existing delivery fleet makeup, which already dedicates 40% of its ridership for halal delivery. The company expects halal delivery to account for up to 50% of total deliveries once Bekal is rolled out nationwide by the end of this year.

Foodpanda Malaysia is committed to helping small vendors secure halal certification, with the goal of certifying up to 3,000 vendors by the end of this year. As the second-largest food delivery firm in Southeast Asia, with an estimated gross merchandise value of US$3.1 billion in 2022, the company aims to make a significant contribution to Malaysia’s GDP through its halal platform. Sayantan shared his optimism about the returns from the Bekal service and said, “Even if we carve out a space for ourselves with end-to-end last-mile deliveries amounting to even 1 per cent of that, that puts us close to a billion dollars in terms of contribution to the economy and in terms of the business that we can generate.”

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