LUMS Independent Study Validates foodpanda’s USD 1.2 Billion Economic Impact in Pakistan FY23-24

Independent Study by LUMS Reveals foodpanda’s USD 1.2bn Economic Impact on Pakistan in FY 2023-24

Pakistan’s leading online delivery platform, foodpanda, has just released the findings of its extensive ‘Economic Impact Assessment of foodpanda in Pakistan’ study. This groundbreaking research, independently conducted by the Lahore University of Management Sciences (LUMS), sheds light on the immense economic contributions foodpanda is making to Pakistan’s economy.

Led by a team of accomplished experts at LUMS, the study leveraged both primary and secondary data, along with input-output multipliers for the local economy, to provide a robust technical assessment of foodpanda’s role in the nation’s economic fabric.

The findings are compelling: foodpanda is projected to contribute a staggering USD 1.2 Billion (PKR 335 billion) to Pakistan’s economy in the current fiscal year (FY 2023-24), a figure that continues to rise year-on-year. The study also highlights strong multiplier effects spanning various sectors, including food, hospitality, manufacturing, transport, and retail.

In FY 2023-2024, foodpanda facilitated PKR 75 billion in Gross Merchandise Value (GMV) for restaurants through its platform, significantly boosting income and job creation within the food sector. Beyond this, the platform contributed a substantial PKR 9.76 billion in taxes during the same period. Foodpanda has also played a crucial role in empowering over 50,000 riders and numerous entrepreneurs, actively driving financial inclusion through its fintech initiatives.

Muntaqa Peracha, CEO foodpanda Pakistan, shared his thoughts on this collaborative effort: “This in-depth study by LUMS powerfully validates foodpanda’s significant role in Pakistan’s economic landscape. It clearly demonstrates strong multiplier effects across diverse industries and underscores our direct contribution to boosting income, creating jobs, and making substantial tax contributions. The insights from this research are invaluable, fueling our commitment to continued innovation, service expansion, and the enhancement of financial inclusion and social responsibility as we strive to build a truly prosperous digital future for Pakistan.”

Dr. Kashif Z. Malik, Associate Professor, Department of Economics at LUMS, further emphasized foodpanda’s broader impact: “Our research at LUMS reveals that foodpanda’s influence extends far beyond mere food and grocery delivery. This study highlights its fundamental role in stimulating growth across a wide array of sectors, empowering a significant number of individuals through entrepreneurship and livelihood opportunities, and substantially contributing to Pakistan’s digital and financial inclusion landscape.”

The study unequivocally showcases foodpanda’s transformative impact on Pakistan’s food delivery ecosystem. It has created significant opportunities for small businesses and gig workers while making a substantial contribution to the national economy. At a micro-level, the platform has facilitated 100% income growth for over 13,000 partner restaurants, enabled an average monthly income of PKR 120,000 for more than 7,000 HomeChefs (predominantly women entrepreneurs), and increased incomes for 57% of its 50,000+ freelance riders.

Foodpanda remains steadfast in its dedication to fostering an inclusive digital economy. Through continuous innovation and expansion, the platform is committed to empowering individuals, supporting businesses, and enabling sustainable growth, thereby solidifying its position as a key contributor to the nation’s prosperity. The scale of foodpanda’s investment and its resulting economic and financial inclusion efforts truly highlight the immense potential within Pakistan and the robustness of its evolving digital ecosystem, encouraging further investment in this burgeoning sector.