In an update, app-based food deliver startup, Faasos has now started aggregating restaurants and chefs around neighbourhoods to increase their menu offering. The app now shows a new section called “local favourites” which features “handpicked dishes from restaurants, chefs and caterers in your locality”
Faasos primarily operated as a quick service restaurant, more on the lines of Dominos and Pizza Hut, where it would run branded kitchens. However, Faasos says that 97% of its orders come online. The company currently operates in 10 cities across India and claims to have 160 distribution centres. The company also claimed that it is serving 350,000 orders per day.
The Faasos menu has broadly 7 to 8 segments -north Indian, biryani, signature rice, curries, wraps, pizzas, desserts, chai and snacks and all-day breakfast.
A report by the Economic Times points that Faasos is looking to expand to other cuisines such as Chinese, salads, pastas, continental and south Indian dishes. It added that the company has added 500 restaurants and caterers in tier 1 cities. The company says that it will help it double the number of orders they receive.
This is an interesting change in business model. Generally, most online food ordering companies have acted as aggregators and have met with very limited success. Look at TinyOwl, SpoonJoy and Food Panda. Food Panda has even been moving in to quick service category and started Express meals. A thumb rule among the food tech companies was that they could get more orders and stay more profitable if they could control the kitchen and the food being prepared. By that, Faasos’ move is certainly interesting. It remains to be seen if it will translate to more orders and whether the companies can contain the costs associated with deliveries and discounts.
In December 2015, Faasos raised Rs 200 crore or about $30 million in a round of funding led by Ru-Net, with participation from existing investors Sequoia Capital and Lightbox Ventures. At the time, it said that it would use the funding for acquisition, starting operations in Kolkata, Chandigarh and Dehradun among other cities, expand in house brands and new services.