Many people may know AirAsia as the budget airline carrier. However, that will change soon with the launch of the AirAsia Food delivery service in Singapore.
We will soon have another platform to send us our midnight McSpicy meal, with their target launch date of March 2.
This new service comes after the aviation company was heavily impacted by the pandemic. They started offering food delivery services in Kuala Lumpur last under the brand AirAsia Food in May 2020.
AirAsia moved into the food delivery industry after finding out the high commission rates charged by food delivery platforms.
The local rates range between 20 to 35 per cent on major players like GrabFood, Foodpanda and Deliveroo.
AirAsia Food wanted to offer an alternative to the other platforms’ high rates, to help F&Bs survive.
The new platform used flat rate plans to power the deliveries. A move to give merchants more control over their businesses.
In the Singapore launch of AirAsia Food, merchants signing up before 1 March would receive a special sign-on rate from as low as 8 per cent for the month of March.
AirAsia plans to charge merchants only 15 per cent for each transaction in their Singapore operations.
The new AirAsia Food venture is in-line with plans by multiple aviation companies’ plans to diversify due to the restrictions in air travel.
Most popularly, our local airline Singapore Airlines had launched dining experiences aboard their aircraft. Recently, they also started delivery their famous satays sent directly to customer’s homes.
AirAsia will be facing stiff competition from GrabFood, Foodpanda and Deliveroo, who take up most of the market share.
Recently, newer startups have also popped up, offering niche services such as WhyQ’s hawker delivery or Pickupp on-demand courier services for smaller F&Bs.
It remains to be seen how AirAsia Food will fare in a highly competitive local food delivery market, estimated to have an annual market of US$646 million last year
We hope that it will “roar” into Singapore as they claim, because more options will always be welcome.
Source: AirAsia Singapore