AirAsia Set To Join S’pore’s Food Delivery Market With AirAsia food

Even though lockdowns have been eased in many countries, airlines around the world are still struggling.

This has led many airlines to innovate and turn to different business models. For example, Singapore Airlines launched catering services on its planes and organized behind-the-scenes tours of its training center.

Like many airlines, the low cost airline AirAsia has also ventured into a new vertical – food delivery – with AirAsia Food.

Sabrina Khaw, head of food at AirAsia, told the Straits Times that the airline turned to food delivery after noting that food delivery platforms in Malaysia were charging “exorbitant commission rates. “.

AirAsia Food operates on a commission-free model, and merchants can choose from flat-rate plans for payment and delivery.

The Malaysia-based airline officially launched AirAsia Food operations in May 2020. According to the carrier, it had served 500 restaurants and delivered nearly 15,000 orders within three months of its operation.

Now the delivery service is looking to start operations in Singapore.

Entering Singapore’s Crowded Food Delivery Industry

Tony Fernandes, CEO of AirAsia / Image Credit: The Star

On Wednesday February 17, AirAsia Managing Director Tony Fernandes announced on LinkedIn that AirAsia’s food would arrive in Singapore “with a roar.”

Even though AirAsia food started almost a year ago in Malaysia, Singapore will be its first foray abroad.

This means it would have to compete with food delivery giants like Foodpanda, Deliveroo and GrabFood, as well as smaller players like WhyQ and Pickupp.

Despite the foreseeable challenges, Tony said he is confident AirAsia food will do well in Singapore.

“It took me seven years to get permission to fly to Singapore, but better late than never. So I would say we’re way ahead of schedule for food. I’m sure we will (will) have a great reception, ”he told The Straits Times.

While he did not say when the services would enter Singapore, he mentioned that interested merchants can now sign up for AirAsia by email.

“As a disruptive leader, we are ready to take on the new challenge in Singapore, bringing value, simplicity and inclusiveness to all,” he said.

Featured Image Credit: Lowyat

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Jothi Venkat

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