Businesses and individuals in Pakistan are finding it difficult to deal with the challenges brought on by the economic meltdown, the devastating floods of 2022, dwindling foreign currency reserves, and global economic uncertainties as a result of the rupee’s significant value decline over the past few years.
Foodpanda, a startup based in Berlin that Delivery Hero purchased for $500 million in 2016, is also dealing with the negative effects of the unrest in Pakistan’s economy.
Even though the business is expanding in terms of Pakistani rupees, it is declining when viewed in terms of dollars, which poses problems for its parent company, Delivery Hero.
Muntaqa Peracha, the CEO of Foodpanda, declared that the company has begun optimising its expenses by switching from the dollar to the rupee in order to combat the situation. For instance, rupees are now used to pay for marketing campaigns that were previously funded in dollars.
Peracha claims that the country’s economic problems have had an impact on their growth in dollar terms, making it challenging to reach their target of turning a profit by 2023. The CEO is confident that the business is on track and will report profits this year, though.
One of the many startups in Pakistan that are advancing their businesses by taking advantage of the populace’s size and growth is Foodpanda. Groceries and food are not at all a luxury, so people will continue to order them, as Peracha puts it.
Due to the Covid-19 pandemic and economic collapse, numerous startups in Pakistan have closed over the past two years.
However, digital businesses like Foodpanda are assisting Pakistan in moving away from the brick-and-mortar model and towards the gig economy, or freelance market, where every single transaction is taxed.
The CEO thinks that working with the government to supplement public service delivery where it is not practical for the government to do so directly is the secret to Foodpanda’s success.
After working in partnership with Talabat, another Delivery Hero subsidiary, to deliver four containers of fresh vegetables to the United Arab Emirates, Foodpanda is now debating going into the export business.
With the help of Middle Eastern competitors, the company is now attempting to expand into the poultry and grocery export markets, which will enable it to quickly reach its profitability goal and boost the nation’s foreign exchange earnings.
As a result of Pakistan’s economic difficulties, businesses like Foodpanda have been forced to use local currency, reduce costs, and search for creative ways to grow.
As the company works towards its goal of becoming profitable this year, its focus on the gig economy and collaboration with the government is sure to drive its success in the long run.