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Foodpanda launches delivery services in 5 cities; plans to expand to 7 more in 6 months

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Rocket Internet-backed online food ordering service Foodpanda has now forayed into food delivery service as well. The service has been launched in 5 cities at present – Bangalore, Delhi, Hyderabad, Mumbai and Pune. The company plans to expand the service to 7 other cities over the next 3-6 months, though it didn’t name any specific city.

Foodpanda CEO Saurabh Kochhar, who was hired last month, claimed that already 20% of the orders received by them in these 5 cities opt for the delivery service. The company is targeting to increase this to about 60-70% of all orders by next year. Restaurants that already offer delivery services and those that don’t are both part of the service. However, it isn’t clear how many restaurants, in these 5 cities, are currently part of this service. We’ve reached out to Foodpanda to find out the answer to that and a few other questions, and will update once we hear back from them. Overall, Foodpanda lists over 12,000 restaurants across more than 200 cities.

Zomato’s delivery service plans: Foodpanda’s move comes at a time when everyone was expecting Zomato to launch a similar service. Zomato CEO Deepinder Goyal had said in a company concall, back in January this year, that they’re likely to introduce delivery services on their own and partner with third-party service providers as well. Interestingly, last month during a Reddit AMA Goyal had said that Zomato’s delivery service will launch by the end of March, starting with Delhi, Mumbai and Bangalore. That obviously didn’t happen. Heck, even Ola launched a food delivery service called OlaCafe for users to order food from nearby restaurants using the Ola app.

The first few months of 2015 have been a busy ones for Foodpanda: Last month, the company raised $110 million from Rocket Internet along with new and existing investors. It planned to utilise the funds for scaling up business, improving product & technology and focusing on user experience. It’s worth noting that Pune-based food ordering service TastyKhana, which Foodpanda acquired last year, is soon expected to be merged with the parent website. In February, Foodpanda had also taken over JustEat’s India operations.

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