McDonald's and foodpanda tie-up to expand delivery network in Malaysia

McDonald’s Malaysia has partnered with foodpanda in Malaysia to expand its McDelivery network, in a bid to extend the reach of McDelivery by penetrating new areas through foodpanda's delivery network.

The expansion is also a result of McDonald's understanding the current shifting consumer trends and changes in the business landscape, that has allowed it to leverage on e-commerce to deliver its meals to consumers. Additionally, McDonald's has also launched its new mobile app to help consumers place orders. The mobile app also has a slew of new features such as a restaurant locator and personalised promotions based on historical purchases and demographics.

McDonald's said in a press statement that it expects a "significant increase in revenue contribution from McDelivery" with the collaboration with foodpanda Malaysia.

In a statement to A+M, McDonald's stated that foodpanda was chosen because it is the largest food aggregator in Malaysia, while its delivery network compliments McDonald's McDelivery service. McDonald's is also open to working with more food aggregators in the future as it believes that the delivery service will only continue to grow. McDonald's declined to reveal the monetary value of the partnership.

Melati Abdul Hai, vice president and chief marketing officer, McDonald's Malaysia described the expansion of McDelivery as a result of the increase in demand, largely owing to a shift in consumer behaviour and lifestyle as well as a change in the ever-evolving business landscape.

She added that the long-term strategy is to equip at least 90% of McDonald’s restaurants with McDelivery services by 2025, while setting its sights on more collaborations with third party operators in the future.

"This strategic partnership is in line with our mission to bring good food into your everyday by satisfying our customers’ McDonald’s cravings from the comfort of their own home or office," Sayantan Das, managing director, foodpanda Malaysia, added.

Foodpanda Malaysia's collaboration with McDonald's Malaysia follows its own expansion plans in Malaysia, announced earlier this year.