foodpanda eyes $2bn impact with Pakistan expansion

KARACHI: foodpanda Pakistan is setting its sights on a bold future, with a plan to double its reach from six million to 12 million households within the next three years, creating what it expects to be a $2 billion economic impact.

Speaking to The News, Director Policy and Communications at foodpanda Hassan Arshad outlined how the company is positioning itself as a key driver of Pakistan’s digital economy and a catalyst for inclusive growth.

Arshad noted that the country’s unique market fundamentals, its population of over 240 million people and mobile penetration exceeding 80 per cent, make it one of the most promising growth environments for e-commerce. With the sector projected to expand at more than 8.0 per cent annually over the next five years, foodpanda is tapping into a youth-driven, technology-savvy consumer base, alongside the growing participation of women in digital platforms.

According to him, the online food delivery sector alone is expected to reach $2.35 billion by December 2025, while grocery delivery is forecast to grow by 19 per cent in 2026, creating enormous opportunities for businesses like foodpanda.

The director highlighted that foodpanda’s contribution to the economy has already been significant. Citing a study conducted by Lums, Arshad revealed that in the fiscal year 2023-24, the company facilitated Rs75 billion in gross merchandise value (GMV) for its restaurant partners, contributing $1.2 billion to Pakistan’s economy. He emphasised that foodpanda’s business model is not only about profits but about enabling a broad ecosystem that includes riders, restaurants, and home-based entrepreneurs.

Addressing the issue of profit repatriation, Arshad clarified that foodpanda has not yet repatriated earnings abroad. Instead, all income is reinvested in Pakistan to strengthen operations, expand infrastructure, and empower local partners. “We continue to channel capital back into our operations to build a resilient and inclusive digital ecosystem,” he said, pointing out that the company has grown a logistics network of over 50,000 riders and partnered with more than 13,000 restaurants and 7,000 HomeChefs, many of them women. These initiatives, he said, create a multiplier effect in terms of job creation, household income, and small-business empowerment.

When asked about the company’s expansion priorities, Arshad explained that foodpanda’s core food delivery service is now operational in 35 cities across Pakistan, a network that forms the backbone of its business. However, the company’s quick-commerce (q-commerce) services — pandamart and shops — are currently limited to just seven cities. “Our next step is to expand these q-commerce offerings to more cities,” Arshad said. He explained that once quick-commerce operations have been scaled successfully, the company will then shift its focus to deeper nationwide expansion, ensuring a sustainable growth trajectory.

Arshad also highlighted the role of government policy in enabling such growth. He stressed that a supportive regulatory and tax framework for the gig economy is vital for companies like foodpanda to continue creating livelihoods for thousands. Issues around transport, labour laws, and data privacy need to be addressed through public-private collaboration, he added.

He pointed out the risks posed by internet blackouts, which have become increasingly common in Pakistan. “The economic impact of internet shutdowns is devastating. They severely disrupt the livelihoods of our riders and restaurant partners,” Arshad warned. As a solution, he suggested that platforms like foodpanda should be whitelisted as essential services, ensuring that food and grocery deliveries remain uninterrupted during such events.

Looking ahead, Arshad described foodpanda’s expansion not merely as a business growth plan but as an opportunity to accelerate digital adoption in Pakistan’s economy. By doubling its reach, investing further in q-commerce, and continuing to empower small businesses and gig workers, the company aims to solidify its role as one of the key engines of Pakistan’s e-commerce transformation.

With the country’s online consumer base growing rapidly and the demand for digital services rising, foodpanda’s ambitions align with a broader shift towards a technology-driven economy. If realised, its target of $2 billion in economic activity could mark a milestone in Pakistan’s digital commerce journey, ensuring that platforms like foodpanda become more than just delivery services; they become vital enablers of growth, opportunity and resilience in a challenging but promising market.