Foodpanda is a food and grocery items delivery service providing multinational company. Rico Wyder and Lukas Nagel founded the food delivery service providing company in 2012. The food delivery service providing company is operating its business in approximately 12 countries across the globe. Today, we’ll discuss the PESTLE analysis of Foodpanda; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Foodpanda
Some of the main political factors in the Foodpanda PESTLE analysis are as follows;
I-Government Policies
The government regulations and policies of different countries are very strict when it comes to food safety and product delivery services. Foodpanda should make sure to comply with the food safety of different to avoid any legal and regulatory restrictions. Sometimes, countries ban a particular brand in their countries from operating and running the business.
II-Trade Regulations
Foodpanda is operating its food delivery service business in approximately 12 countries. The political conflicts and tension would negatively impact the sales and business of the particular brands. They may impose taxes and add other trade regulations for the food delivery brand to run and operate its business in the country.
III-Political Stability
A stable political environment plays a key role in the growth and development of food delivery companies. For instance, strikes, procession, roadblocks, and other violent activities would make it nearly impossible for Foodpanda to smoothly perform its deliveries to the end consumers.
Economic Factors Affecting Foodpanda
Some of the main economic factors in the Foodpanda PESTLE analysis are as follows;
I-Economic Growth
The global economy is showing significant growth in the food delivery businesses. That’s why many businesses and companies are investing and setting up their own delivery services and offering home delivery services to customers. However, it presents great growth opportunities for the business of Foodpanda.
II-Inflation and Interest Rate
The interest and inflation rates of the country directly impact the sale and purchasing power of the food delivery service band Foodpanda. The higher inflation rate of the country would increase the retail price of products and goods; a high interest rate would make customers save money rather than invest it. Both these economic indicators negatively impact the sales, revenue, and profit of the brand.
III-Regulatory Cost
Foodpanda needs to invest a significant amount of legal costs and expenses to keep its business running in various countries across the globe. For instance, the trade regulations, licenses and agreements, taxes, and maintaining other food safety standards. Ultimately, they negatively impact the retail price and the profitability of the brand.
Social Factors Impacting Foodpanda
Some of the main social factors in the Foodpanda PESTEL analysis are as follows;
I-Busy Lifestyle
The consumer market is leading a very busy lifestyle due to the tough economic and social challenges. In the midst of all of this, it is highly difficult for them to prepare food for them at home regularly. That’s why they prefer readymade cooked food delivered to their home address. It allows them to save a lot of their valuable time and resources.
II-Food and Cultural Preferences
Foodpanda is operating its food delivery business in approximately 12 countries across the world. The food menu tastes and preferences of different countries are different due to various socio-cultural factors. However, the food delivery service brand offers multiple food options to the customers depending on their interests and requirements.
III-Tech Usage Attitude
The customer market has adopted and accepted the usage of tech and digital devices in their daily routine. In fact, they prefer businesses and companies with digital web platforms, because it allows them to connect with the food delivery service provider online without physically going there.
Technological Factors Affecting Foodpanda
Some of the main technological factors in the Foodpanda PESTEL analysis are as follows;
I-Platform Development
Foodpanda is a tech company that offers a digitally optimized web platform and mobile application. The food delivery brand needs to invest a significant amount of capital resources in technological development to smoothly perform its web business operations.
II-Data Security
Foodpanda deals with a vast variety of customer data daily from multiple countries. It imposes a significant responsibility and obligation on the company to protect the private and sensitive data of users and customers. However, it helps the company to Avoid the data breach and protects the data security of customers.
III-Payment Technology
In order to make the online payment transaction smoother, Foodpanda needs to integrate its web platform with multiple financial institutions of different countries. It allows the company to attract multiple types of customers with different payment methods.
Legal Factors Impacting Foodpanda
Some of the main legal factors in the Foodpanda PESTEL analysis are as follows;
I-Food Safety Regulations
Foodpanda should comply with the food safety regulations of different countries to avoid expensive lawsuits, heavy fines, duties, and potential bans and restrictions. Safe, healthy, and timely delivery of food allows the company to earn the trust and confidence of customers.
II-Data Privacy Laws
Foodpanda should make sure to secure its database to avoid any type of cyber attacks and database breaches. A safe and secure database allows the company to attract potential lawsuits.
Environmental Factors Affecting Foodpanda
Some of the main environmental factors in the Foodpanda PESTEL analysis are as follows;
I-Carbon Footprint
Food delivery packages and delivery services contribute a significant amount of environmental waste and carbon emission rate. In order to comply with the environmental sustainability trends; Foodpanda is investing in biodegradable packages, electrics, and bio-fuel vehicles to decrease the carbon emission rate and environmental waste.
Conclusion: Foodpanda PESTLE Analysis |PESTEL Analysis of Foodpanda |External Environmental Analysis of Foodpanda | Strategic Analysis of Foodpanda
After an in-depth study of the pestle analysis of Foodpanda; we have realized that Foodpanda is the world’s leading food delivery service providing company. If you are learning about the Foodpanda PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
