KUALA LUMPUR (Jan 9): Extremely large data sets that may be analysed computationally to reveal patterns, trends and associations (big data) has rapidly changed the food delivery industry in the past 10 years.  

foodpanda Malaysia managing director Sayantan Das said data analytics had trimmed 50% off delivery time for 30,000 foodpanda riders, averaging deliveries up to three trips per hour now.

Das said the dynamism of big data in the improvement of operational processes is not exclusive to the banking or financial sector alone as the food delivery business is now embracing the need for big data in its day-to-day operations.

He said food delivery is in fact the proverbial poster child of big data's effectiveness in operating the billion-dollar delivery industry.

Das said crucial customer data collected from reviews and social media networks can be used in providing personalised and customer-centric needs and, in turn, assist in tweaking operational standard operational procedures to achieve the desired outcome.

“The switch to cloud kitchens or delivery-only set-ups would not have been possible as well without the availability of data to vindicate the decision to go down that path.

“Bold guarantees such as 20 minutes or 30 minutes delivery time offered by foodpanda are not ‘shot in the dark’ estimates, but made possible with the data to back up the feasibility of such offerings,” he said in an email to theedgemarkets.com.

Das said real-time data collection on traffic and route plans provides an accurate estimation of the delivery time and the firm can also predict the impact of these factors on food items, and hence allow it to take preventive measures against food wastage.

“We have come to a point where we understand our customers better and services are provided as per their preferences through analysing crucial factors, such as the impact of temperatures on food or the impact of market trends on consumption.

“Insights obtained into eating patterns, trends and predictive data from food delivery are used to capitalise on a variety of demands and menu choices that would be ordered at a specific time,” he said.

Das said apart from what customers are likely to order, such predictions help foodpanda restaurant partners obtain data-backed foresight into what their customers like or if a new opportunity is to be added for that particular demographic.

“Transport pattern profiling helps us decide on future cloud kitchens as demand for a certain type of food is seen to be frequently ordered within a certain area, thus making it sensible for a cloud kitchen to be set up in that area.

“This will evidently cut transport cost and time, allowing us to make our pricing more competitive for our customers as well,” he said.