KARACHI: foodpanda’s operations contributed a staggering $1.2 billion (Rs335 billion) to Pakistan’s economy in the fiscal year 2023-2024, according to an independent study conducted by the Lahore University of Management Sciences (LUMS).
The report titled ‘Economic Impact Assessment of foodpanda in Pakistan’, released on Thursday in Karachi, highlights the platform’s far-reaching impact on job creation, entrepreneurship and financial inclusion across multiple sectors. The study underscores strong multiplier effects generated by foodpanda’s ecosystem, notably in food, hospitality, manufacturing, transport and retail. In FY2023-24 alone, the platform enabled Rs75 billion in restaurant gross merchandise value (GMV) -- total revenue earned by restaurants via the app -- demonstrating its role in energising the dining and hospitality sector.
A key highlight is foodpanda’s contribution of Rs9.76 billion in taxes during the same year, alongside its direct empowerment of more than 50,000 freelance riders and thousands of entrepreneurs through digital and financial access.
The research also revealed that 13,000 plus restaurant partners experienced up to 100 per cent income growth, while 7,000 plus HomeChefs -- predominantly women -- earned an average of Rs120,000 per month. Additionally, 57 per cent of riders reported an increase in their income due to the platform.
Several HomeChefs who spoke to The News highlighted how selling their food through the app meant that they could worry less about concerns like overhead costs and logistics and focus more on simply making food. “I don’t have to worry about hiring delivery riders, dealing with payment systems or investing in expensive marketing campaigns” said HomeChef Kashif Pasha, adding that “the analytics and data [foodpanda] provide[s] also help[s] me understand what my customers love and this allows me to refine my menu and grow my business strategically”.
While speaking to media at the release of the report in Karachi, Muntaqa Peracha, CEO of foodpanda Pakistan, hailed the findings, stating, “This in-depth study by LUMS is a powerful validation of foodpanda’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 fuel our determination to continue innovating and improving financial inclusion”.
Another HomeChef Arooj Liaquat said, “The most rewarding part is connecting with my customers. The ratings and reviews on foodpanda are a transparent way to get direct feedback, which has helped me improve my dishes and build trust. Seeing positive reviews and repeat customers gives me a huge sense of pride, confirming that people genuinely appreciate the love and effort I put into my cooking.”
Dr Kashif Z Malik, associate professor at LUMS and lead author of the study, added, “Our research reveals that foodpanda’s impact extends far beyond food delivery. It is a catalyst for digital growth, entrepreneurship, and financial empowerment across the country”.
Per Mahwish Butt, a home-based chef, “Before foodpanda, my cooking was just a hobby. Now, they’ve given me a customer base and a simple way to manage orders, allowing me to focus on my passion while earning a living and gaining financial independence for my family.”
Aside from HomeChefs, Peracha also underscored the work that foodpanda does for its fleet of riders, providing them with theft, life and personal accident insurance, loans for bike purchases and special discounts on tires and maintenance. He also mentioned that the company was aiming to convert 30-40 per cent of its fleet to e-bikes and that there has to be policy support in this front, particularly a network of chargers for riders.
