In a nondescript warehouse in Singapore, rows of snacks, produce and cleaning supplies are stacked not by category but by algorithm. Top-selling items sit closest to dispatch points, while real-time data on customer demand dictates what gets replenished each day. In Asia’s increasingly competitive grocery space, the biggest transformation may be happening behind the scenes. Foodpanda, with operations across more than a dozen Asian markets, is at the frontline of this shift. Inside the ‘d
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In a nondescript warehouse in Singapore, rows of snacks, produce and cleaning supplies are stacked not by category but by algorithm. Top-selling items sit closest to dispatch points, while real-time data on customer demand dictates what gets replenished each day.In Asia’s increasingly competitive grocery space, the biggest transformation may be happening behind the scenes. Foodpanda, with operations across more than a dozen Asian markets, is at the frontline of this shift.Inside the ‘dark store’ At the heart of Foodpanda’s grocery play are its 24/7 Pandamart dark stores, which feature mini warehouses scattered across dense urban neighbourhoods, designed solely for online fulfilment. Unlike traditional supermarkets, these facilities are built for speed rather than browsing.“Using data and insights helps us to reduce waste, restock based on local demand and get orders out in minutes,” Raphael Zennou, VP of q-commerce at Foodpanda, told Inside FMCG. “For instance, we use a location-based inventory system that allows products to be placed anywhere in the store, regardless of their category.”Products are barcoded and mapped digitally, allowing pickers to find them faster while maximising storage density. Popular items are placed closer to dispatch stations, trimming precious seconds off each order. Later this year, Foodpanda plans to roll out automated monitoring of temperature and energy use across its stores, alongside capacity-measurement tools for freezers and coolers.“The latter enables fact-based inventory planning and closer alignment between commercial, supply chain and store teams,” Zennou added. “By investing in these technologies, we free up our teams to focus on quality control and customer care, such as ensuring products meet freshness guarantees and improving service. It’s a smart balance between tech and the human touch.”A complement, not a cannibalStill, Foodpanda is quick to stress that its ambitions are not to replace traditional retailers but to complement them. In fact, the company increasingly pitches itself as a logistics and data partner for established grocers.In Singapore, the company’s tie-up with DFI Retail Group allows customers to access nearly 20,000 grocery items delivered within an hour. Meanwhile, in Hong Kong, its collaboration with Best Mart 360 brings a wide range of imported snacks and household staples onto the platform.Over time, Foodpanda envisions a hybrid grocery model, where physical stores and online platforms reinforce each other. Brick-and-mortar spaces provide the discovery and sensory experience; q-commerce provides the immediacy and convenience.“We see q-commerce and traditional retail as complementary,” Zennou said. “Retailers can use Foodpanda to extend their reach beyond physical shelves, while tapping into our logistics, infrastructure and data to serve customers better and faster.”Convenience and redefinedFoodpanda’s own data shows that customers are largely satisfied with 30-45-minute delivery windows. Reliability and predictability, rather than sheer speed, have become the differentiators.“Whether it’s scheduling a delivery to match your routine, avoiding long queues, or getting a forgotten item late at night, on-demand delivery fits around busy lives. It’s about convenience with reliability, not just speed,” he added. “Additionally, with Foodpanda, brands also now have an immediate interaction with consumers, based on past purchases. Tapping into lifestyle factors such as convenience and reliability, we allow brands to instantly offer relevant new products with great offerings, something a physical space is unable to achieve.”Another frontier is assortment. Foodpanda’s data-driven approach allows its Pandamarts to adapt inventory to local tastes, stocking more than 5000 unique products in some Singapore locations. Demand signals can even drive cross-border supply: in Hong Kong, rising appetite for Japanese goods has led Foodpanda to directly import items to meet consumer preferences.“We’re also constantly expanding into new categories – in the Middle East, we are seeing great reception on our platform for categories such as flowers, toys and even electronics,” Zennou said.At the same time, Foodpanda emphasises its role in spotlighting local merchants, aiming to extend their visibility citywide, “democratising access” while diversifying its own offerings.The AI horizon Perhaps the most transformative element of Foodpanda’s vision is its bet on artificial intelligence (AI). Within two to three years, the company believes AI could shift grocery shopping from transactional to truly personalised.“An AI assistant will be able to understand you better than current personalisation algorithms – whether it’s wanting to lose weight, needing a diabetic diet, or your views on buying decisions and even more,” Zennou explained. “AI assistants could also analyse your salary and spending patterns, down to your financial goals and decide what the recommended grocery budget is for the given week. With all of this information, AI can potentially place an order without needing to ask.”
