Yangon-based food delivery service Food2U has secured a six-figure investment from four local investors as the company eyes expansion into Mandalay and Napyitaw.
Part of the investment will go towards developing the company's back-end system which handles the automation of food ordering, invoicing and monitoring deliveries, Nay Min Thu, one of the investors told Myanmar Business Today.
This latest investment brings the total value of the company to $1.5 million, he said.
After seeing month-on-month growth of 15 to 20 percent since Food2U launched in Yangon in 2015, Nay Min Thu, founder of online retail portal iMyanmar Group, says demand in other areas of the country is also strong.
“We are taking to restaurants in Mandalay, we've already spoken to about a dozen… and they are quite keen to join the platform.”
“The business model we'll use in Mandalay will be different to the one in Yangon, because in Mandalay some restaurants already have their own delivery service so we'll just provide the system for ordering,” he said.
Expansion into the nation's sparsely populated capital will see Food2U will take on yet a different model to Mandalay and Yangon, with “retirees” and “rich people” becoming the service's target consumer.
Initially, Food2U will hire five to ten staff in Mandalay and Napyitaw to handle the expansion while the company predicts a more modest growth rate of between five and 10 percent month-on-month.
Catering to a mainly local customer base, Food2U has so far struck partnerships with 120 restaurants in Yangon and makes over 5,000 deliveries per month while this fiscal year Food2U is predicted to generate about $750,000 revenue, said Nay Min Thu.
Despite fierce competition from main rival Yangon Door2Door, Myanmar's developing food delivery culture means there's ample opportunity to grow, says Nay Min Thu, who predicts the nascent sector will be generating “tens of millions” of dollars in revenue within a few years.
“Compared to our competitor Yangon Door2Door we cater more to the local crowd rather than the expatriate market so we feel it will get bigger every year.”
Source: Myanmar Business Today
May 25, 2017
Delivery Service Food2U Secures Funds for Expansion Into Mandalay, Napyitaw


Delivery Service Food2U Secures Funds for Expansion Into Mandalay, Napyitaw
2017-05-25T12:17:00+06:30
Evelin Petkov
Comments
Delivery Service Food2U Secures Funds for Expansion Into Mandalay, Napyitaw
2017-05-25T12:17:00+06:30
Evelin Petkov