Singapore – Malaysian budget carrier AirAsia has launched its food delivery service in Singapore and announced that it already has 500 riders on board.
AirAsia revealed on Tuesday (March 2) that its food delivery platform, named AirAsia Food, has officially launched in Singapore and will initially feature about 80 restaurants, including Maki-San and Swee Choon Tim Sum Restaurant.
About 300 other restaurants are in the process of being added to the line-up, reported straitstimes.com.
Per delivery, the platform will charge merchants a 15 per cent commission instead of following the initial plan for a zero-commission model.
The rate is still about five per cent lower compared to the three major food delivery operators in Singapore, namely, GrabFood, FoodPanda and Deliveroo. The lower commission would result in lower charges paid by customers, said AirAsia.
AirAsia Group’s chief executive Tony Fernandes said in a virtual press conference that the airline would seek to give better value for the food delivery business while reducing costs.
“Just like (how) AirAsia doesn’t have all the frills of Singapore Airlines, AirAsia food, for instance, we don’t have maps. We don’t think you really need to know where your driver is because that costs us,” said Mr Fernandes.
He added, “We think you will still be able to communicate with us to know where your food is, and that’s an unnecessary frill.”
AirAsia is aware of the tight competition in the country when it comes to food delivery services.
“Will we be the largest food delivery service in Singapore? Probably not,” he noted. “But I think we will be a useful segment of the market; we will be a very useful segment for small restaurants.”
There are about 500 delivery riders recruited by AirAsia Food, and the company aims to double that number by the third quarter of 2021.
The maximum distance riders are permitted to deliver is 20 km away from a merchant. Meanwhile, the delivery fee would normally be between S$2.99 and S$20, added AirAsia.
To get a foot into the market, AirAsia Food is offering unlimited free delivery for two weeks between March 2 and March 16. The promotion applies for deliveries within an 8 km radius from the order point.
The platform aims to deliver orders within 60 minutes and will allow customers to earn reward points that could be used for AirAsia flights. While the initial 60-minute delivery schedule is considered lengthy, Mr Fernandes noted it would be shortened eventually.
According to AirAsia super app head of e-commerce, Mr Lim Ben-Jie, interested merchants can join the platform within 48 hours of registration. No registration fees apply.
Furthermore, they estimate its delivery riders will earn up to S$700 a week on average./TISG
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