Independent Study Reveals foodpanda’s USD 1.2 Billion Economic Impact on Pakistan’s Economy in 2023-2024
An independent assessment by the Lahore University of Management Sciences (LUMS) shows that foodpanda’s operations injected USD 1.2 billion into the Pakistan economy in FY 2023-2024 through direct platform activity, induced spending, and supply-chain effects. This article unpacks the LUMS study’s key findings, explains the rigorous input-output methodology, examines how foodpanda empowers over 50,000 freelance riders and 7,000 HomeChefs, explores multiplier impacts across sectors, highlights sustainability and social responsibility initiatives, and outlines future growth and policy recommendations. Policymakers, business leaders, and gig workers will gain actionable insights into how digital platforms drive economic development and social inclusion.
What Are the Key Findings of the LUMS Economic Impact Study on foodpanda in Pakistan?
The LUMS Economic Impact Assessment of foodpanda in Pakistan is a comprehensive evaluation that quantifies direct platform contributions, supply-chain ripple effects, and household spending induced by rider and HomeChef incomes. This approach ensures transparent attribution of output, employment, and fiscal benefits, setting the foundation for detailed sectoral and social impact analysis.
How Much Economic Value Did foodpanda Generate in 2023-2024?
foodpanda generated USD 1.2 billion (PKR 335 billion) in combined direct, indirect, and induced economic value in FY 2023-2024 by facilitating millions of orders across 35 cities.
Below is a breakdown of the economic value types measured in the LUMS study.
The combined USD 1.2 billion figure highlights foodpanda’s significant role in driving overall economic activity and paves the way for examining employment and fiscal contributions.
What Employment Opportunities Has foodpanda Created in Pakistan?
foodpanda has generated employment for over 50,000 freelance riders and more than 7,000 HomeChefs in FY 2023-2024, fostering flexible income opportunities in urban and peri-urban areas.
An overview of the workforce impact is shown below.
This surge in gig work and micro-entrepreneurship demonstrates foodpanda’s capacity to enhance livelihoods, leading naturally into its fiscal contributions to government revenues.
How Much Tax Revenue Did foodpanda Contribute to Pakistan’s Economy?
foodpanda’s transactions and partner payments generated PKR 9.76 billion in tax revenue for federal and provincial governments during FY 2023-2024.
This robust tax contribution underlines the platform’s fiscal impact and supports public services, setting the stage for exploring its role in restaurant GMV growth.
What Is foodpanda’s Role in Pakistan’s Restaurant Gross Merchandise Value (GMV)?
foodpanda facilitated PKR 75 billion in restaurant GMV in FY 2023-2024, driving revenue growth for eateries by expanding customer reach and streamlining order management.
This substantial GMV demonstrates foodpanda’s effectiveness in digitizing food services and leads into the methodological rigor behind these estimates.
How Was the Economic Impact of foodpanda Measured in the LUMS Study?
LUMS employed an input-output Economic Impact Analysis (EIA) that integrates foodpanda’s operational data with national multipliers to assess direct, indirect, and induced effects on output, employment, and tax revenue. This robust methodology ensures precise attribution of economic contributions across sectors.
What Is Economic Impact Analysis and Why Is It Important?
Economic Impact Analysis (EIA) is the systematic assessment of how a project or business activity influences economic output, jobs, and fiscal revenues through direct transactions, supply-chain linkages, and induced household spending. It is important because it uncovers the full scope of an organization’s contributions beyond its internal accounts, informing investment decisions and policy frameworks.
Economic Impact Analysis Methodology
This research provides the methodological framework used by LUMS to assess foodpanda’s impact.
How Did LUMS Conduct the Economic Impact Assessment of foodpanda?
LUMS conducted the assessment via:
- Data Collection – Gathering primary data on foodpanda’s order volumes, rider payments, and partner transactions.
- Input-Output Modeling – Applying national input-output tables to trace how direct spending circulates through agriculture, manufacturing, transportation, and services.
- Impact Estimation – Calculating employment impacts and tax revenues using sector-specific multipliers for direct, indirect, and induced effects.
This structured process provides transparent, replicable estimates and leads to understanding methodological trade-offs.
What Are the Limitations and Strengths of the Study’s Methodology?
The LUMS study’s strengths include transparent use of established input-output frameworks, integration of primary operational data, and sectoral granularity. Its limitations involve potential underestimation of informal economic activities, static multiplier assumptions that may not capture dynamic market shifts, and less emphasis on regional variations.
These considerations set realistic expectations for interpreting results and inform practical applications of the findings.
How Does foodpanda Empower Pakistan’s Gig Economy and Freelance Workforce?
foodpanda empowers Pakistan’s gig economy by offering flexible earning opportunities, digital onboarding, and entrepreneurial pathways for riders and HomeChefs. This fosters financial inclusion, skill development, and social mobility across diverse communities.
Who Are the Freelance Riders and HomeChefs Working with foodpanda?
foodpanda’s freelance riders are predominantly urban youth and part-time workers who leverage the platform for flexible income, while HomeChefs are micro-entrepreneurs—often women—who prepare and sell home-cooked meals through the app.
Riders and HomeChefs benefit from reliable order flows and digital payment systems, creating a network of independent professionals whose success drives broader economic activity.
How Does foodpanda Support Financial Inclusion and Entrepreneurship?
foodpanda advances financial inclusion by providing:
- Digital wallet integration for seamless payments and savings.
- Partnerships with micro-finance institutions offering small business loans.
- Training modules on financial literacy and food safety standards.
Gig Economy and Financial Inclusion
This study supports the article’s claims about foodpanda’s role in promoting financial inclusion.
What Are the Broader Benefits of foodpanda’s Gig Economy Model in Pakistan?
foodpanda’s gig model enhances economic resilience by reducing youth unemployment, stimulating local supply chains for packaging and food ingredients, and increasing urban consumer spending. It promotes skills development in logistics and customer service, creating a more adaptable workforce and strengthening community networks.
These socio-economic benefits prepare the ground for exploring multiplier effects across key industries.
What Are the Multiplier Effects of foodpanda’s Economic Impact Across Pakistan’s Industries?
Multiplier effects measure how initial spending triggers additional rounds of economic activity, amplifying output and employment beyond the platform’s direct operations. Understanding these effects reveals cross-sector linkages and investment opportunities.
How Does foodpanda Affect the Food, Hospitality, and Retail Sectors?
foodpanda boosts restaurant revenues by expanding order volume, optimizes kitchen operations through demand forecasting, and increases footfall for retail outlets supplying ingredients. This drives improvements in menu diversity, service quality, and customer engagement.
The uplift in these sectors illustrates how digital platforms can revitalize traditional businesses and prepare them for digital transformation.
What Is the Impact on Transportation and Manufacturing Industries?
foodpanda’s logistics network creates sustained demand for motorcycles, fuel, maintenance services, and packaging materials. This demand supports manufacturers of two-wheelers, spare parts, and sustainable packaging suppliers, reinforcing industrial growth and job creation beyond the platform.
These industrial linkages underscore the platform’s role in fostering diversified economic development.
How Does foodpanda Contribute to Pakistan’s Digital Economy Growth?
foodpanda accelerates digital economy growth by expanding mobile app adoption, integrating online payment gateways, and encouraging investments in e-commerce infrastructure. Increased consumer familiarity with digital transactions spills over into other online services, driving overall digital penetration.
This digital momentum feeds back into platform scale-up and innovation in delivery and payment solutions.
What Are foodpanda’s Sustainability and Social Responsibility Initiatives in Pakistan?
foodpanda embeds sustainability and social responsibility in its operations to minimize environmental footprint and enhance community welfare, aligning business growth with long-term societal goals.
What Environmental Sustainability Efforts Has foodpanda Implemented?
foodpanda has implemented several environmental initiatives to reduce waste and promote green practices.
Sustainability and Social Responsibility
This research highlights the importance of sustainability and social responsibility initiatives, which are discussed in the article.
These measures decrease single-use plastics and improve environmental outcomes, reflecting the platform’s commitment to responsible growth.
How Does foodpanda Support Rider Welfare and Community Empowerment?
foodpanda enhances rider welfare and community well-being through:
- Health insurance and accident coverage for active riders.
- Skills workshops on safe driving, first aid, and digital literacy.
- Local community events promoting rider recognition and social integration.
By investing in welfare programs, foodpanda strengthens social bonds and builds trust among its workforce.
What Is the Future Outlook for foodpanda and Pakistan’s Food Delivery Market?
foodpanda and the broader food delivery sector in Pakistan are poised for sustained expansion driven by technology adoption, urbanization, and supportive policies. Understanding future trajectories helps stakeholders align strategies with emerging opportunities.
How Is foodpanda Planning to Grow Its Market and GMV in Pakistan?
foodpanda aims to double its GMV by 2028 through:
- City Expansion – Entering tier-2 and tier-3 cities.
- Grocery Delivery – Scaling everyday essentials alongside meals.
- Merchant Partnerships – Onboarding local retailers and cloud kitchens.
These strategic moves will deepen market penetration and diversify revenue streams.
What Are the Emerging Trends in Pakistan’s Digital and Gig Economy?
Key trends shaping the next phase include:
- Rising 4G/5G coverage accelerating mobile commerce.
- Integration of fintech services like digital lending and insurance.
- Regulatory frameworks evolving to formalize gig-worker protections.
These trends create a fertile environment for platform innovation and sustainable gig work models.
What Policy Recommendations Support a Thriving Gig Economy in Pakistan?
To bolster the gig economy’s growth, policymakers should:
- Streamline onboarding and tax registration for freelance workers.
- Offer tax credits and infrastructure grants to digital platforms.
- Establish social security schemes covering health and retirement benefits.
Such reforms will enhance worker security, incentivize investment, and sustain inclusive economic growth.
foodpanda’s USD 1.2 billion contribution to Pakistan’s economy in 2023-2024 underscores the transformative potential of digital platforms. By quantifying direct, indirect, and induced impacts, the LUMS study provides a roadmap for leveraging technology to drive employment, tax revenues, and sectoral growth. Empowering over 50,000 riders and 7,000 HomeChefs fosters financial inclusion and stimulates local supply chains, while sustainability and welfare initiatives reinforce long-term social benefits. Strategic expansion plans and supportive policies will ensure that foodpanda continues to catalyze Pakistan’s digital economy and gig-work ecosystem.