Foodpanda's Kitchen Equipment Bought by Filipino Business Fruitas Holdings

Cloud kitchen equipment owned by Foodpanda has been acquired by a unit of listed Filipino company Fruitas Holdings Inc. This seems to indicate that the food delivery service is well on its way to exiting the Philippine market. 

In a disclosure to the Philippine Stock Exchange on Tuesday (October 3), Fruitas said its wholly owned subsidiary Fly Kitchen Inc. has purchased “top-notch cloud kitchen equipment” formerly owned by Foodpanda.

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Fly Kitchen owns and operates several food brands, including Hatid Pinoy, Jade Express, Kanin at Sabaw, and others. Fruitas said it is prepared to “expand its capabilities with the acquisition of the culinary equipment which Foodpanda previously utilized.”

“With the advanced kitchen technology, Fly Kitchen is now able to expand its menu with new methods, processes, and flavors,” the company said in the disclosure. “The use of cutting-edge equipment allows the company to streamline every aspect of its operations, from food preparation to presentation, resulting in even higher service and product quality. Additionally, the advanced kitchen equipment will give Fly Kitchen the freedom to experiment with new recipes which will excite the taste buds of its loyal consumers and new customers. Finally, the kitchen equipment will open the door for the company to collaborate with and prepare third-party brands which would fit well with its present cloud kitchen operations.”

The company behind familiar food brands like Fruitas, Buko Loco, Johnn Lemon, Balai Pandesal, and Sabroso Lechon announced in September last year that it would venture into the cloud kitchens space with the launch of Nube Kuxina. The company said then that the new venture will help it reach more customers more efficiently.

“We are pleased to announce this tactical purchase of top-quality kitchen equipment from Foodpanda. This decision reflects our dedication to providing outstanding gastronomic experiences to our patrons,” said Lester Yu, Fruitas Holdings President and Chief Executive Officer.

Foodpanda, an online food and grocery delivery platform present in 40 countries in five continents, had been reportedly in talks to sell its business in the Philippines and other Southeast Asian markets, including Singapore, Malaysia, Thailand, Cambodia, Myanmar, and Laos. Its German parent firm, Delivery Hero confirmed the negotiations last week.

It was reported that rival firm Grab, which is also in the online food delivery business in addition to ride-hailing, would snap up the business, although the Singapore-based tech giant has not issued an official confirmation of the deal.

A CNBC report last September 22 confirmed a new round of layoffs, citing the need for the company to “become leaner, more efficient and more agile.” It was the company’s third round of job cuts following one in February 2023 and another in September 2022.