Hong Kong: grocery delivery in 15 minutes

Charles Chan
Senior Retail Analyst
@RetailAnalysis

Date : 19 February 2020

Foodpanda has launched its on-demand grocery delivery service, Pandamart, in Hong Kong.

Committed to increasing partners and products

Foodpanda began testing Pandamart last November. During testing, Pandamart was able to fulfil orders within 25 minutes. The service aims to maintain an average delivery time of 15 minutes.

Foodpanda partners with 1,000 businesses and sells more than 14,000 items. The business has expanded its service from restaurant take outs to the delivery of groceries and non-food items (beauty, baby, etc). Local partners include Circle K, Okashi Land, Heroes Beer and kitchenware store I Love Kitchen.

The company hopes to expand its partnerships to 3,000 businesses and increase the number of products available to 550,000 by the end of the year.

Encouraging shoppers to try Foodpanda

Arun Makhija, Foodpanda Hong Kong’s CEO, said, “Over 76% of people in Hong Kong are forecast to have used online delivery within 2020. We would like all of them to try Foodpanda for either groceries or food delivery.”

Our view

Historically, Hong Kong’s city economy and shoppers’ close proximity to physical stores have limited demand and significant development in online grocery - quite different to many other markets in the region. Shoppers will continue to look for more convenient ways to shop and we are seeing a growing popularity of Click and Collect in Hong Kong. Over the last 12 months, however, external factors such as social unrest and coronavirus, have provided greater reason for retailers to innovate online and consumers to explore alternative ways to shop.