AirAsia Food to spread its wings to Johor and Penang next month


KUALA LUMPUR: Almost a year since its introduction in the Klang Valley area, AirAsia food is now set to spread its wings to other major cities in the country starting with Johor and Penang next month.

AirAsia Bhd chief executive officer Riad Asmat said the business was recording a very positive growth, especially during the return of Conditional Movement Control Order between October to December 2020, and the trajectory remained promising into 2021.

He said under its expansion plan, the company had started an entrepreneurial programme to recruit more talents to grow airasia food together in the upcoming potential markets, as well as securing more merchants under its umbrella.

"People are ready and looking for more (food delivery services) options right now and our offerings at airasia food, be it from the customer and merchant’s perspective, can accommodate their needs within the market,” he told Bernama in an interview recently.

Riad named Ipoh, Kota Kinabalu, Kuching, Miri, and Kota Bharu as the next potential markets.

As for international market, he said the company aimed to mark its presence in Singapore next month, and other markets such as Indonesia, the Philippines and Thailand soon.

Launched during the Movement Control Order (MCO) in May 2020, airasia food is a seamless, fuss-free and affordable food delivery platform for merchants as it runs on a flat-rate model that is equivalent to only a 10 per cent commission rate.

He said at present, it has the lowest commission rate in the market as other platforms’ commission fees range between 15 per cent and 30 per cent, and airasia food is the only platform that offers a flat rate.

Merchants can also easily control their menu and prices and receive extended delivery coverage of up to 60 kilometres compared to a 15-kilometre coverage by other food ordering platforms.

Riad said although there are service providers that have been in the market much longer, airasia food believes that the market is big enough for one more alternative with the advantages it can bring to the table.

He said airasia food provides merchants with a competitive offering, which directly and indirectly can help them reap a greater return in terms of profitability and low cost, which in turn benefits their customers.

As one of the businesses under the airasia.com Asean super app, airasia food is supported by airasia.com's ecosystem of over 60 million users who are able to earn and pay with their BIG Points, he said.

"The advantages of merchants joining us will be on the basis of the strong structure, including from the technology and client perspectives. A merchant now will get a potential exposure of up to 60 million clients within our ecosystem,” he said.

On prospects, Riad said sales picked up during the lockdowns but the business would remain relevant in the future after vaccines are made available, as technology helps people to meet their needs in a very convenient way.

"If you give the right products that people want and keep enhancing the business with innovation, surely you can sustain the business for a long period.

"Our growth at airasia food does not only help local food businesses, but also has a spillover effect in creating more job opportunities,” he said.

To-date, airasia food employs more than 1,500 teleporters (riders) offering services to 1,200 restaurants around the Klang Valley. - Bernama
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