foodpanda eyes new growth areas beyond food and household items with LEGO tie-up

Food and grocery delivery brand foodpanda has inked a deal with the LEGO Group, marking its first major toy brand partnership. In this first phase of the partnership, customers in Malaysia and Singapore can access hundreds of different LEGO products on demand within 30 minutes.  According to foodpanda, this marks the LEGO Group’s entry into the q-commerce space. In Singapore, the LEGO store will be featured on foodpanda shops with its own branded in-app storefront, which allows the brand full autonomy to run promotions and campaigns. Customers in Malaysia can purchase LEGO sets from selected pandamart cloud stores in Klang Valley and Seremban. 

There are currently 30 pandamarts carrying LEGO products, to be expanded to more pandamarts by the end of the fourth quarter of 2022. With millions of users across Singapore and Malaysia, making LEGO products available on the platform allows the LEGO Group to reach new, mobile-first customers who seek the convenience of on-demand deliveries every day.

“We are excited to partner with foodpanda as we celebrate nine decades of creativity and play. Entering the quick commerce market will make it more convenient for our customers to get LEGO products and bring new opportunities for people to build and play together whenever and wherever they feel like.” said U-Fong Chua, SEA e-Commerce head at the LEGO Group.

In a recent release, foodpanda announced its milestone of digitalising 50,000 retailers across Asia – including leading supermarket chains, convenience stores, pharmacies, florists, gift shops, pet stores, neighbourhood bakeries, mom-and-pop stores, and lifestyle brands. This partnership marks foodpanda’s expansion of non-grocery categories to better provide for customers’ daily lifestyle needs.

Beyond groceries, foodpanda has seen an increase in demand for new categories such as the games segment. In the first half of 2022 compared to the same period last year, foodpanda has seen orders for this segment increase by 450%.

“We’re thrilled to have onboard an iconic company like LEGO which is also associated with fun and enjoyment,'' said Chris Urban, director, marketplace, foodpanda. “By expanding the variety of shops on foodpanda, we can cater to our customers’ evolving needs and deliver anything they need, beyond daily essentials.”

Last week, foodpanda officially launched its suite of advertising technology (AdTech) and marketing solutions, panda ads. Initially introduced in 2021 as a proof of concept, panda ads provide brand partners with advertising opportunities to reach digital-native customers beyond traditional channels.

With the launch, foodpanda aims to bring a suite of integrated advertising features that encompass the foodpanda app, digital marketing assets and new partnership programmes. It offers a full suite of advertising options, from static or carousel images, to videos and lead-generating ads. Brands can also leverage foodpanda’s social media channels and enter partnerships across foodpanda’s verticals to build brand visibility, and allow for performance tracking and monitoring. According to the company, foodpanda will support clients through their entire campaign journey, from ideation, activation and measurement, with full reporting and insights-sharing.

The added initiatives come as the brand made cuts to its teams amidst tough economic conditions. "To our impacted colleagues – we are very sorry we let them down; we will forever be grateful for their contributions and dedication to foodpanda," the company had then said. Foodpanda has been operating in Asia for the past 10 years and the spokesperson said that it wants to continue contributing to its digital future. 

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