FOODPANDA VENDOR REVIEW 2022 | ARE THEY WORTH IT???
FOODPANDA VENDOR REVIEW
This is my personal review of Foodpanda as a vendor/partner.
I’ll share my experience being a merchant partner for three months (April-June 2022) without any hidden agenda.
This article will provide you with an overview of how Foodpanda works, which can be helpful, especially for small food business owners planning to partner with them.
Although it’s a 6-minute read post, I assure you it’s worth your time.
It could save you from headaches and help you make a wiser decision about whether to push through with your partnership with them or not.
Make sure to read it all, particularly the end section, where I share a little secret. 😉
NOTCH WAFFLE (by Mad Gorilla)
First off, I owned a small food stall inside Kwikspar Snack and Bar in Salinas Drive, Lahug, Cebu City.
It’s called Notch Waffle, which became a hit when I launched it last year (2021).
Within four months, I hit ₱1M in gross sales with a 45% net income without the use of third-party delivery apps.
Below is photo on one of our menus.
THE PARTNERSHIP
I decided to partner with Foodpanda after sales declined due to Typhoon Odette hitting Cebu in December 2021.
Fuel price hikes due to the war in Ukraine and Russia in February 2022.
And COVID restrictions lifting in Cebu City, allowing people to go out and dine.
Despite hearing negative feedback from other vendors, I still chose to partner with them.
However, I realized that partnering with Foodpanda did not help increase my store sales but rather killed them.
STORE SALES
Below is a screenshot taken from our Foodpanda vendor portal app from April to June 2022:
As shown, we had 539 total orders, 530 successful orders, and nine canceled orders.
With a total revenue of ₱202,794.00, reflecting our gross sales in Foodpanda from April 7 to June 30, 2022.
REMITTANCES & HIDDEN CHARGES
I created a tracker of my Foodpanda remittances, which you can check on the photo and link below.
The data highlights the following:
- Total Remittances Received: This is the total amount we received from Foodpanda after commissions and fees taken from our total revenue. Out of ₱202,794, we only received ₱82,942.77 from April-June.
- Total Panda Commission Fee: This is the total commission fee that Foodpanda took from our gross sales/revenue.
- Total Panda Declared Sales: This is the sum of Total Remittances Received + Total Panda Commission Fee.
- Total Panda Portal App Sales: This corresponds to sales from the Foodpanda portal app that I previously shared.
- Total Hidden Charges: This refers to the total amount that I didn’t see anywhere on the invoice from Foodpanda.
You may wonder what these hidden charges are.
When I contacted Foodpanda Support and asked for the breakdown of my billing statement from June 16–22 cut-off.
I found out that there were deductions that I didn’t see on the invoice.
You can check them by clicking on the link below.
https://bit.ly/pandaexcelinvoice_june16-22_2022
Additionally, I noticed other deductions where I was charged twice, which you can see under Columns Q (₱2,822.40), R (₱398.10), and S (₱817).
(See photo below)
I am seeing other or similar DEDUCTIONS which I can simply say, I am CHARGED TWICE, and you can see it under Columns Q (₱2,822.40), R (₱398.10), and S (₱817). (See photo screenshot below)
To be honest, I’m having trouble understanding their invoice.
Unlike their competitor, the invoice they sent isn’t straightforward and simple.
FOODPANDA COMMISSION & GROWTH PROMOTIONS
For your information, Foodpanda takes a 30% commission out of your total revenue, and it will be more if you participate in either of their promotions below:
- Pandaclicks: This is similar to PPC or pay-per-click, with a minimum amount to spend of ₱4,000.
- Pandabox: This corresponds to their deal pop-ups, with a maximum of 15 orders per day.
- Discounts: You can give a discount on all of your menu items, ranging between 15%-35%.
- Pandapro: This is an exclusive discount between 25%-40% for their club members.
If you opt for their discounts promotion of 15%, Foodpanda will take out 45% from your total revenue (gross sales).
For information of everyone, I participated in all of their promotions but canceled the other two last June 1, 2022.
And retained the Pandabox and Discounts but with the least amount of discounts and daily orders from Pandabox.
Take note, YOU will really get more SALES if you participate in one of their promotions.
You will get few to NONE if you don’t participate.
Hands down to them, they are really good at finding customers for you, unlike with their competitor.
ADDITIONAL AND IMPORTANT INFORMATION
If you decide to become a vendor/partner/merchant with Foodpanda, expect to receive two emails a few days after the cut-off period:
- PH FICA or Form Collection: This is the invoice that shows the total fees/deductions from Foodpanda.
- Payment Advice Note: This is the remittance notice email that shows how much you’re receiving from them.
Their cut-offs are as follows:
- 1–7 of the month: You’ll receive your remittances between three to five days after the cut-off.
- 8–15 of the month: You’ll receive your remittances between three to five days after the cut-off.
- 16–22 of the month: You’ll receive your remittances between three to five days after the cut-off.
- 23-end of the month: You’ll receive your remittances between three to five days after the cut-off.
Expect to spend money out of your pocket first between 12–13 days before you receive your remittances from them, even if you’re a T+1 vendor.
As far as I know, I was one of their T+1 vendors because one of their agents informed me that I qualified.
It happened when one of their agents offered me to participate in their promotions, which I gladly accepted.
FINAL VERDICT
Are they worth it?
Are they scamming small business owners with their hidden fees and charges?
Partnering with Foodpanda didn’t help increase my store sales but rather killed them.
The hidden charges and fees they deducted were unexpected and caused me trouble understanding their invoice.
Although they’re good at finding customers for you, participating in their promotions comes at a cost.
If you’re planning to partner with them, be prepared to receive fewer sales if you don’t participate in any of their promotions.
But for me and my house, it’s the END of the road with them.
SECRET TO THE FOODPANDA GAME
As for the little secret..
A vendor told me to jack up my prices to 100% or more when listing menu items in Foodpanda.
For example, if you’re selling a SILOG for ₱60, list it for ₱120 or ₱130 in Foodpanda as long as the price or value is reasonable.
However, I couldn’t raise my prices to 100%, just like other vendors who were doing it.
That’s why it’s the end of the road with them for me and my business. 😉
