AirAsia food to start deliveries in Singapore in March in first foray outside Malaysia
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AirAsia Food, budget carrier AirAsia’s delivery service, is looking to spread its wings and start operations in Singapore.
Ms Amanda Woo, Air Asia’s chief commercial officer, told The Straits Times on Thursday (Feb 18) that its food delivery service will launch here next month, and that it has obtained all the necessary approvals from Singapore authorities.
On top of food and beverage outlets, AirAsia is also calling for those in the beauty, fashion, fresh produce, and hotel industry to register their interest, as it is preparing to launch more products, said Ms Woo.
AirAsia’s chief executive Tony Fernandes had said in a LinkedIn post on Wednesday that his company’s latest venture would be coming to “Singapore with a roar”.
The food delivery service began operations in Malaysia in May 2020. According to the carrier, it had served 500 restaurants and delivered close to 15,000 orders in its first three months of its operation.
Coming to Singapore will be AirAsia Food’s first overseas foray.
“As a disruptive leader, we’re ready to take on the new challenge in Singapore, providing value, simplicity, and inclusivity for everyone,” Mr Fernandes said.
Miss Sabrina Khaw, head of AirAsia food, said that the company pivoted towards food delivery after considering that food delivery platforms in Malaysia were charging “exorbitant commission rates”, averaging between 20 percent and 35 percent.
She added that there was very little control given to merchants over their own store when it came to food deliveries.
“AirAsia food runs on a zero-commission model. Merchants are able to choose from flat-rate plans powering payment and delivery,” she said.
The budget carrier has been heavily affected by the Covid-19 pandemic’s disruptions to air travel. Last July, its auditors filed a report with the stock exchange in Kuala Lumpur saying the airline may not survive.
Three months later, it was reported that its long-haul arm was out of money and needed to raise up to RM500 million ($164 million) to restart.
“As a disruptive leader, we’re ready to take on the new challenge in Singapore, providing value, simplicity, and inclusivity for everyone,”
AirAsia is not the only airline forced to provide other services to survive after being battered by travel restrictions due to Covid-19.
Singapore Airlines has started restaurant services in its airplanes and conducted behind-the-scenes tours at its training facility.
Other airlines around the world have launched sightseeing “flights to nowhere” and started selling themed merchandise.
AirAsia food now aims to cut itself a slice of the lucrative food delivery pie here. According to research firm Statista, online food delivery was a US$464 million (S$616 million) business in Singapore last year.
Foodpanda, Deliveroo, and GrabFood – which entered the market in 2012, 2015 and 2018 respectively – remain the major players in food delivery here, with several new platforms such as WhyQ, Chope On, and Pickupp having leaped onto the food-delivery bandwagon.
Mr Fernandes said that he was sure AirAsia food will do well in Singapore despite the crowded food delivery space.
“It took me seven years to get approval to fly to Singapore but better late than never. So I’d say, we’re way ahead of schedule on food. I’m sure we (are) going to get a great welcome,” he said.
“So Singapore: here we come.”
Questions & Answers
Q.What is AirAsia Food's competitive advantage in the Singapore market?
What is AirAsia Food's competitive advantage in the Singapore market?
AirAsia Food operates on a zero-commission model, allowing merchants to choose from flat-rate plans for payment and delivery. This contrasts with other platforms in Malaysia that charge high commission rates.
Q.Which other industries is AirAsia looking to expand into in Singapore?
Which other industries is AirAsia looking to expand into in Singapore?
Beyond food and beverage, AirAsia is preparing to launch products in the beauty, fashion, fresh produce, and hotel industries. They are calling for businesses in these sectors to register their interest.
Q.How successful has AirAsia Food been in its home market of Malaysia?
How successful has AirAsia Food been in its home market of Malaysia?
In its first three months of operation in Malaysia, AirAsia Food served 500 restaurants. During this period, it delivered close to 15,000 orders.
Q.Who are the main established players in the Singapore food delivery market?
Who are the main established players in the Singapore food delivery market?
The major players in Singapore's food delivery market are Foodpanda, Deliveroo, and GrabFood. These services entered the market in 2012, 2015, and 2018 respectively.
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