Foodpanda sees higher oil prices driving online grocery demand

ONLINE delivery platform Foodpanda Philippines said volatility in oil prices linked to conflict in the Middle East could increase demand for its online grocery service, pandamart, as consumers seek to manage transport costs.

“We see this as an opportunity to drive trials, especially among customers who may not have tried online grocery shopping yet,” Foodpanda Philippines Director for Q-Commerce Joseph Wijesekara said in an e-mailed reply to questions.

Escalating conflict in the Middle East has pushed oil prices higher in recent weeks, with Brent crude averaging about $100.75 per barrel as of April 12.

Philippine Energy Secretary Sharon S. Garin said on Monday that oil companies would cut diesel prices by P23 per liter this week.

Despite fluctuations in oil prices, the company said it does not plan to raise prices, Mr. Wijesekara said.

“For us, this is also an investment in helping educate Filipinos that there are now more convenient and accessible ways to do their grocery shopping,” he said.

Foodpanda Philippines also expects pandamart to double its business this year, supported by its 24/7 operations.

“We expect pandamart to double as a business this year, and our 24/7 service is one of the key growth drivers supporting that momentum,” Mr. Wijesekara said.

Last month, Foodpanda said its pandamart service would operate 24/7 nationwide to address demand for availability and speed in the quick-commerce (q-commerce) sector.

Mr. Wijesekara said the shift to a 24/7 grocery service aims to support convenience for consumers managing long work hours and commutes.

“It’s not meant to replace offline shopping, but to complement it in a way that fits how people live today,” he said.

With its 24/7 model, pandamart aims to serve demand for deliveries beyond regular store hours.

The service offers a full grocery selection, including produce, meat, seafood, and household items.

Growth in digital payments may also support demand, Mr. Wijesekara said, as more consumers adopt contactless transactions.

Data from the Bangko Sentral ng Pilipinas showed that 57.4% of retail payments were made through digital channels as of 2024.

Foodpanda launched pandamart in Singapore in 2019 and has since expanded the service to markets across Asia-Pacific, including the Philippines, Malaysia, Thailand, Taiwan, Hong Kong, Bangladesh, and Pakistan. — Beatriz Marie D. Cruz