LUMS Study Unveils foodpanda’s USD 1.2 Billion Economic Impact on Pakistan in FY 2023-24

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

Breaking news from Pakistan’s digital landscape! A recent independent study by the Lahore University of Management Sciences (LUMS) has shed light on the immense economic footprint of foodpanda, the nation’s leading online delivery platform. The comprehensive ‘Economic Impact Assessment of foodpanda in Pakistan’ study unveils some truly impressive figures, showcasing how foodpanda is driving significant growth and opportunities across the country.

Spearheaded by an accomplished team at LUMS, the study meticulously utilized both primary and secondary data, incorporating input-output multipliers to provide a robust technical assessment of foodpanda’s contribution to the very fabric of the economy.

Prepare to be amazed: the LUMS study projects foodpanda’s contribution to Pakistan’s economy to hit a staggering USD 1.2 billion (PKR 335 billion) in Fiscal Year 2023-24. This isn’t a one-off achievement; the platform’s economic impact has been steadily climbing over the past two years, demonstrating its increasing influence. The research also highlights strong ‘multiplier effects,’ meaning foodpanda’s activities are creating ripple effects across vital sectors like food, hospitality, manufacturing, transport, and retail, boosting economic activity far and wide.

How does this massive impact break down? In FY 2023-24 alone, foodpanda facilitated a whopping PKR 75 billion in Gross Merchandise Value (GMV) for restaurants. This isn’t just revenue; it’s a direct injection of income and a creator of jobs within the bustling food sector. Beyond revenue, foodpanda is also a significant contributor to the national exchequer, adding PKR 9.76 billion in taxes during the same period. More importantly, the platform has become a livelihood for over 50,000 riders and countless entrepreneurs, playing a crucial role in enhancing financial inclusion through its fintech initiatives.

Muntaqa Peracha, CEO of foodpanda Pakistan, expressed his enthusiasm about 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 are invaluable, and fuel our determination to continue innovating, expanding our services, and improving financial inclusion and social responsibility, all while building a truly prosperous digital future for Pakistan.”

Dr. Kashif Z. Malik, Associate Professor, Department of Economics at LUMS, echoed this sentiment, adding: “Our research at LUMS reveals that foodpanda’s impact extends far beyond just food and grocery delivery. This study highlights its fundamental role in stimulating growth across a diverse range of sectors, empowering a significant number of individuals through entrepreneurship and livelihood opportunities, and contributing substantially to the digital and financial inclusion landscape of Pakistan.”

The study doesn’t just focus on the macro-economy; it delves into the tangible, micro-level impacts on individuals and small businesses. For instance, over 13,000 partner restaurants have seen a remarkable 100% income growth thanks to the platform. The innovative HomeChefs program, which primarily empowers women, has enabled over 7,000 HomeChefs to earn an average monthly income of PKR 120,000. And for the diligent 50,000+ freelance riders, a significant 57% have experienced an increase in their income.

foodpanda’s commitment to fostering an inclusive digital economy in Pakistan is clear. The platform continues to innovate and expand, steadfast in its mission to empower individuals, support local businesses, and drive sustainable growth. Its significant contributions solidify its position as a vital player in the nation’s journey towards prosperity. This comprehensive study not only highlights the immense potential within Pakistan’s evolving digital ecosystem but also underscores the crucial role of platforms like foodpanda in attracting further investment into the sector, paving the way for even greater economic development.