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Low-cost airline AirAsia flies its food delivery service into Singapore

AirAsia Food aims to disrupt the food delivery service scene in Singapore

Low-cost airline AirAsia has announced it will be launching its food delivery service AirAsia Food in Singapore in March.

The airline’s food delivery service began operating in May 2020 and has so far only operated in Malaysia, where the airline is headquartered.

“As a disruptive leader, we’re ready to take on the new challenge in Singapore, providing value, simplicity and inclusivity for everyone,” said Tony Fernandes, the chief executive of AirAsia Group in a post on LinkedIn.

“Sceptics and naysayers who’d said we’ll never make it in the airline industry – took me seven years to get approval to fly to Singapore but better late than never. So I’d say we’re way ahead of schedule on food.”

AirAsia Food aims to disrupt the food delivery service scene in Singapore, currently dominated by GrabFood, FoodPanda and Deliveroo, by charging merchants a lower commission fee of 15% for each transaction.

Why does this matter?

  • With international business travel and the tourist industry on hiatus for much of 2020 (and surely 2021) because of the Covid-19 pandemic, AirAsia has had to alter the way it does business to keep itself flying.
  • It previously formed the AirAsia Media Group to consolidate its adtech, content and media-related solutions. AirAsia is keen to offer brands a new way of integrating adtech and data, focused on travellers and pop-culture in Asean.
  • AirAsia’s target customers are diverse, from locals to international travellers to the pop-culture scene, Sumit Ramchandani, the chief executive of AirAsia Media Group, previously told The Drum, which is why it has pivoted to e-commerce, fintech and lifestyle pillars like AirAsia Food.

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