Wednesday, June 12, 2013

DealGuru spins out Asian food delivery business - Food Runner

E-commerce operator DealGuru Holdings, the firm behind Southeast Asian buying site, has spun out its food delivery subsidiary to form ‘Food Runner’, the number one food delivery company in Southeast Asia. With the spin out, Food Runner, operating the Room Service Deliveries brand, has more than 50,000 registered users and delivers several million dollars’ worth of restaurant food annually.

Announcing Food Runner, Chief Executive Officer (CEO) Mr Lance Frey explained the rationale for the stand alone. “The business has been growing strongly. We felt it had reached a point where it made sense to operate with the greater flexibility and focus that a separate business provides. While we will continue to improve our position in Singapore and Malaysia, the next big opportunity is expansion into other Southeast Asian markets, adding millions of consumers to our reach.”

Rebate Networks Founder and Managing Director (CEO) Mr Michael Brehm expressed his optimism. “We know Southeast Asia well, holding several investments there. It is an area of vast opportunity, including in the food delivery business. By 2015, we project the SEA food delivery market to be worth US$390 million, driven by consumer demand, rising incomes and continued urbanization”.

Southeast Asia is one of the world’s most economically vibrant areas, with a population of some 600 million
and some of the world’s fastest growing economies, including The Philippines (7.8%), Indonesia (6.0%) and
Thailand (5.3%). “We believe we have the best business model to succeed: we are number one in Southeast Asia by food sales and revenue; we have deep local, entrepreneurial knowledge of each country, city, block, jalan (street) and lorong (lane); and we provide the best value and service to both restaurants and food lovers. We will invest the right resources in the right cities, remaining focused on Southeast Asia, and not spread thinly across two or three dozen markets”, concluded Lance.

By 2015 the value of the takeaway & home delivery food market in SEA is predicted to replicate the rapid
growth and expansion seen in global markets. Companies in both developed and emerging markets are
generating hundreds of millions of dollars of revenue each year, including US-based Just Eat, US-based
Seamless/Grubhub, Europe’s Delivery Hero, Turkey’s Yemeksepeti and Russia’s Delivery Club and Foodik.

About Food Runner
Food Runner operates in Singapore, Malaysia and Indonesia (under franchise) as Room Service Deliveries. It became part of DealGuru Holdings in 2012. Food Runner provides restaurants with customer leads, order
processing and food order delivery services, allowing them to reach and serve more customers.

The company provides a services platform for customers to choose from hundreds of restaurants and thousands of food choices, and have lunch or dinner delivered quickly to their home or office. Food Runner is majority owned by DealGuru Holdings (DealGuru), the leading independent e-commerce operator in Singapore and Malaysia. DealGuru reported 2012 revenue of US$40 million. DealGuru made the original food service delivery investment to extend its expertise of managing a large online e-commerce platform, including technology, customer service and scalability. The traditional ‘off line’ food delivery model has been modernised with online capabilities, providing greater scale and efficiencies.

Source : Rebate Networks-backed DealGuru spins out Asian food delivery business - ‘Food Runner’; Largest Food Delivery Business in Southeast Asia

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