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Airasia halts food delivery service in Singapore

Airasia halts food delivery service in Singapore

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Airasia’s food delivery ambitions seem to have come to a halt in Singapore. A quick check by MARKETING-INTERACTIVE found that the brand’s web-based platform informed users that addresses within Singapore were outside its coverage area. MARKETING-INTERACTIVE has reached out to AirAsia for a statement. According to a check by The Straits Times, this was the case for 12 consecutive days from 20 December 2022 to 31 December 2022.

Airasia’s food app was launched in Singapore in February 2021. As part of the launch in the Singapore market, airasia food was on the hunt for F&B operators to sign up as merchants, offering a special sign-on rate as low as 8% for the month of March.

In comparison to other food delivery platforms, such as FoodPanda, Deliveroo and GrabFood, airasia’s food delivery service initially charged eateries a lower commission rate of 15% without any hidden fees or charges to the F&B operators. This allows for eateries to keep their profits favourable. 

When the app initially launched in Singapore, an airasia spokesperson told MARKETING-INTERACTIVE, "Our strength in technology and logistics infrastructure, plus deep insights to our customers’ preferences will allow us to remain the preferred choice for Singapore customers. We are not distracted by competitive forces and will continue to stay focused on bettering our delivery speed to under 30 minutes, product and service offerings."

The food delivery service was part of airasia foray into digital services and superapp ambitions. In November 2022, airasia’s parent company, Capital A enhanced the brand’s Super App by introducing airasia chat, games and the newly launched airasia gifts - allowing the community of airasia members to connect, play and share.

Separately, the company recently took its subscription product SUPER+ worldwide with two options open for subscribers - SUPER+ Lite and SUPER+ Premium. The former covers all ASEAN countries while the latter offers access to all countries operated by the airline.

Related articles:
airasia Super App adds gifting option as part of community-led experience
airasia food lands in Jakarta
Analysis: Can airasia food's aspirations in SG take flight amidst stiff competition?

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