The trouble with Foodpanda

[I_PLAY_BAD]

Guys,
This article is seriously an eye opener for those enthusiastic bunch of humans who are contemplating to start a business.

Link: http://www.livemint.com/Companies/rYKC6HjnShogjE62jO5lpK/The-trouble-with-Foodpanda.html

 

[pmaitra]

The article is very confusing. Even more confusing is this in the article:

What on earth is this supposed to mean?

 

[I_PLAY_BAD]

The article is very confusing. Even more confusing is this in the article:

What on earth is this supposed to mean?

Simple.
Any one can create a fake profile for a restaurant in food panda.
And the same person can order food in that fake restaurant using food panda's buy one get one free. What will happen ? I will pay ₹300 for the transaction and get ₹528 (excluding food panda's commission). A profit of ₹228 without having to deliver anything to anyone because I was the one who ordered food in the fake restaurant which I already created.

Even I figured out this logic after thinking twice or thrice

 

[pmaitra]

Simple.
Any one can create a fake profile for a restaurant in food panda.
And the same person can order food in that fake restaurant using food panda's buy one get one free. What will happen ? I will pay ₹300 for the transaction and get ₹528 (excluding food panda's commission). A profit of ₹228 without having to deliver anything to anyone because I was the one who ordered food in the fake restaurant which I already created.

Even I figured out this logic after thinking twice or thrice

Ok, I understand what you are saying, but the math doesn't make sense to me.

I pay Rs. 300 to Food Panda. I receive Rs. 528 from Food Panda.

So, where did that balance Rs. 228 come from?

If Food Panda is keeping a commission, then Food Panda has to receive an amount. However, Food Panda is losing an amount. Please help me understand this.

 

[Yumdoot]

Ok, I understand what you are saying, but the math doesn't make sense to me.

I pay Rs. 300 to Food Panda. I receive Rs. 528 from Food Panda.

So, where did that balance Rs. 228 come from?

If Food Panda is keeping a commission, then Food Panda has to receive an amount. However, Food Panda is losing an amount. Please help me understand this.

Probably from the kind of source you cannot name.

 

[I_PLAY_BAD]

Ok, I understand what you are saying, but the math doesn't make sense to me.

I pay Rs. 300 to Food Panda. I receive Rs. 528 from Food Panda.

So, where did that balance Rs. 228 come from?

If Food Panda is keeping a commission, then Food Panda has to receive an amount. However, Food Panda is losing an amount. Please help me understand this.

Remember you are purchasing using buy one get one promo. As a customer you will be paying ₹300 only but food panda has to deliver you food worth ₹600 (₹300 worth free food).
Now food panda will have to pay that ₹600 to the restaurant deducting its commission of 12%. Hence ₹528.

In this case you are the customer as well as the restaurant owner.
As a customer you pay ₹300 and as a restaurant owner you get ₹528 from food panda. As you don't have to deliver food for yourself that ₹528-₹300=₹228 is profit for you.

From foodpanda point of view it gets ₹78 as commission.

 

[pmaitra]

Remember you are purchasing using buy one get one promo. As a customer you will be paying ₹300 only but food panda has to deliver you food worth ₹600 (₹300 worth free food).
Now food panda will have to pay that ₹600 to the restaurant deducting its commission of 12%. Hence ₹528.

In this case you are the customer as well as the restaurant owner.
As a customer you pay ₹300 and as a restaurant owner you get ₹528 from food panda. As you don't have to deliver food for yourself that ₹528-₹300=₹228 is profit for you.

From foodpanda point of view it gets ₹78 as commission.

You are not getting it.

Look below:

1. Buyer ($100) ~ Middleman ($0) ~ Seller (food)
2. Transaction takes place with 10% commission.
3. Buyer (food) ~ Middleman ($10) ~ Seller ($90)

Ok, so this makes sense.

Now, let's get to this Food Panda thingy, where buyer = seller.

1. Buyer (Rs. 300) ~ Middleman (Rs. 0) ~ Seller (no food)
2. Transaction takes place with whatever commission.
3. Buyer (no food) ~ Middleman (-$228) ~ Seller (Rs. 528)

So, Food Panda earned a commission of negative Rs. 228! This makes sense only if you tell me that Food Panda is a charity.

 

[I_PLAY_BAD]

You are not getting it.

Look below:

1. Buyer ($100) ~ Middleman ($0) ~ Seller (food)
2. Transaction takes place with 10% commission.
3. Buyer (food) ~ Middleman ($10) ~ Seller ($90)

Ok, so this makes sense.

Now, let's get to this Food Panda thingy, where buyer = seller.

1. Buyer (Rs. 300) ~ Middleman (Rs. 0) ~ Seller (no food)
2. Transaction takes place with whatever commission.
3. Buyer (no food) ~ Middleman (-$228) ~ Seller (Rs. 528)

So, Food Panda earned a commission of negative Rs. 228! This makes sense only if you tell me that Food Panda is a charity.

Foodpanda doesn't promote this. It gives freebies to promote its business. These fellows are using it to their advantage and make money.

 

[pmaitra]

Foodpanda doesn't promote this. It gives freebies to promote its business. These fellows are using it to their advantage and make money.

So, basically, this is a stupid business model of Food Panda full of loop holes and lacking verification, and therefore, Food Panda has gone into financial troubles. That is the gist of this whole issue.

 

[anoop_mig25]

Food panda higher boses from germany should fire current Indian boses who it seems like hand in glove with crooks and should hire some one with good ethics

Its rivial zomato charges too much amount