When it comes to the impact of delivery apps, most conversations revolve around convenience...
economic
When it comes to the impact of delivery apps, most conversations revolve around convenience, getting dinner at your door or groceries within the hour. But beyond the surface of fast deliveries and food orders lies a much deeper story, one of livelihoods, taxes, and a growing digital economy.
A new study by the Lahore University of Management Sciences (LUMS) explores this lesser-known side of food delivery, focusing on Foodpanda’s economic footprint in Pakistan for the fiscal year 2023–2024. According to the independent assessment, the company contributed a projected USD 1.2 billion (PKR 335 billion) to the national economy in that year alone. The study analysed both primary and secondary data, including output multipliers, to understand how the platform’s activities influence various sectors.
One of the standout findings: PKR 75 billion were facilitated in revenue for partner restaurants and contributed PKR 9.76 billion in taxes. It also supported more than 50,000 riders and small-scale entrepreneurs, many of whom are navigating the growing world of digital finance through fintech tools.
Muntaqa Peracha, CEO of Foodpanda Pakistan, responded to the study saying, “This in-depth study is a powerful validation of the company’s significant role in Pakistan’s economic landscape. It showcases strong multiplier effects across industries and highlights our role in directly boosting income and jobs, along with a significant tax contribution. The insights provided by the research are invaluable, and fuel our determination to continue innovating, expanding our services, and improving financial inclusion and social responsibility, all while building a truly prosperous digital future for Pakistan.”
Dr Kashif Z. Malik, Associate Professor at LUMS, also weighed in on the platform’s broader influence, “Our research reveals that their impact extends far beyond just food and grocery delivery. This study highlights its fundamental role in stimulating growth across a diverse range of sectors, empowering a significant number of individuals through entrepreneurship and livelihood opportunities, and contributing substantially to the digital and financial inclusion landscape of Pakistan.”
The highlights micro-level shifts, like income doubling for over 13,000 partner restaurants, average monthly earnings of PKR 120,000 for more than 7,000 HomeChefs (most of them women), and increased earnings for 57 per cent of the platform’s 50,000+ freelance riders.
While tech platforms often face criticism over sustainability and gig work models, the findings from this study show how deeply intertwined Foodpanda has become with the broader economy. Its growth has ripple effects across manufacturing, logistics, retail, and financial sectors, offering a glimpse into how digital ecosystems are reshaping work and income in Pakistan.
- You! desk
