AirAsia jets into Singapore’s food delivery wars by undercutting competitors

AirAsia aircrafts taking off and a plate of noodles. Photo: Coconuts
AirAsia aircrafts taking off and a plate of noodles. Photo: Coconuts

Malaysia’s low-cost air carrier is setting course for a new horizon: food delivery and ecommerce in Singapore.

AirAsia announced today it was entering the crowded delivery market with AirAsia Food by luring local merchants with low commission rates and a quick onboarding process. It also invited businesses in beauty, hotels, cosmetics, and fresh produce to register their interest in a future e-commerce service.

“Singapore is the most vibrant market in the region, if not globally, and we are super excited to kickstart airasia food in Singapore,” CEO Tony Fernandes said in a news release, adding that delivery teams have already “painted the town red in Malaysia and now we are ready to take on the streets of Singapore.”

The company said it would charge merchants 15% commission, which goes down to 8% if they sign on before March. That compares favorably to Singapore’s other major food delivery services such as GrabFood, which charges merchants around 25% to 30% commission

It would do nothing less than “democratise” the food delivery industry, Fernandes asserted.

“We look forward to serving the people of Lion City on ground with the delicious offerings from their favourite F&B outlets,” the airline added in its announcement.

Sneak peak of the airasia food platform. Photo AirAsia
Sneak peak of the airasia food platform. Photo AirAsia

AirAsia last year reported more than a billion ringgit in losses amid the pandemic travel slowdown. It also laid off hundreds of employees to stem losses. 

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