Brand with QR code for Fantuan Asian meals supply service within the Silicon Valley, Mountain View, California, January 3, 2021.
Smith Assortment/gado | Archive Pictures | Getty Photographs
NEW YORK – When Kelly Wu feels sick and desires a supply of congee, the Chinese language porridge she grew up consuming, she opts for a platform many might not have heard of.
The New York Metropolis resident would not open apps from multi-billion greenback firms like Uber Eats or DoorDash. As an alternative, the 22-year-old pulls up Fantuan, a rising Vancouver-based startup that focuses particularly on the ecosystem surrounding Asian cuisines.
“I really feel prefer it’s simply the equal of ‘Asian’ DoorDash or Uber Eats,” Wu mentioned in an interview with CNBC.
Digital meals ordering and supply platforms have develop into ingrained in on a regular basis American life over the previous decade, with firms like Uber Eats, DoorDash and GrubHub turning into family names. However in terms of Asian meals, connoisseurs like Wu and restaurant house owners are choosing smaller platforms like Fantuan or competitor HungryPanda.
A ‘distinctive’ technique
Fantuan’s technique seems to be completely different than that of larger meals platforms given its deal with Asian companies, based on co-founder Yaofei Feng.
The 11-year-old firm sends representatives to speak to retailer house owners in individual about getting on the platform slightly than making an attempt to achieve them on-line, Feng mentioned. These conversations will usually happen in Chinese language, on condition that he mentioned many of those entrepreneurs converse English as a second language.
“The best way we acquire their belief could be very distinctive,” Feng mentioned.
Having choices apart from English for the app is interesting for enterprise house owners who discover it simpler to speak of their first language. The app design can be extra harking back to Chinese language platforms like Alibaba than American alternate options, Feng mentioned, which may present a way of familiarity.
Since Fantuan first entered the U.S. in 2019, Feng mentioned it has expanded to greater than 50 cities starting from giant metropolises comparable to Los Angeles to school cities like Davis, Calif. The corporate’s U.S. footprint was boosted by its acquisition of Chowbus’ supply enterprise final 12 months.
Slightly than run giant promoting campaigns, Fantuan primarily spreads the phrase via offering signal holders at storefronts and stickers for supply drivers. The startup has additionally labored with influencers on platforms like TikTok and RedNote, a well-liked short-form video app in China.
Feng mentioned Fantuan’s primary buyer bases are first-generation immigrants and worldwide college students craving genuine cuisines tied to their dwelling international locations. He mentioned the corporate meets with faculty scholar associations to search out potential clients coming to the U.S. from Asia.
However Feng mentioned there’s potential for the app to achieve a wider viewers as meals together with bubble tea develop into mainstream within the U.S. The corporate mentioned it noticed a progress charge for gross merchandise worth of greater than 20% within the U.S. final 12 months, earlier than taking pictures as much as 31% within the first quarter of 2025.
“With the immigration and the social media, everyone loves Asian meals,” Feng mentioned. “If they need genuine choices, they may also use the app.”
HungryPanda supply app signage in Chinatown, NYC.
Alex Harring | CNBC
Following the Chowbus acquisition, many enterprise house owners and customers contemplate HungryPanda as the principle competitor to Fantuan. Wu mentioned she additionally has HungryPanda’s app, however hasn’t ordered on it since she first started utilizing Fantuan, and has been happy with the service.
HungryPanda didn’t reply to CNBC’s interview inquiry for this story. HungryPanda introduced final 12 months that it raised $55 million, which will likely be utilized in half to gas growth efforts in North America.
On the subject of the broader meals supply app panorama, Feng mentioned he sees the corporate “co-existing” alongside bigger-name firms slightly than “competing.” That is as a result of the draw of Fantuan is connecting genuine – and sometimes smaller – companies to clients as a substitute of making an attempt to win over giant chains that already use different platforms.
“It’s totally onerous … long-term, to compete with the monopolies,” he mentioned. “However we wish to hold our distinctive approach.”
A deal with Asian cuisines
In Flushing, a neighborhood of New York Metropolis’s Queens borough recognized for its giant inhabitants of Chinese language-People, Andrew Chau sees first-hand how the client base has taken to Fantuan.
Chau mentioned his outpost of Yomie’s Rice x Yogurt sees round 50 orders every day on the platform. By comparability, Chau mentioned he is fortunate to get one order each few days on apps like Uber Eats or DoorDash.
Chau likes that the app gives customers promotions and that he can talk with customer support via WeChat, a well-liked messaging platform in China. He additionally mentioned many eating places close by use the platform, as evidenced by firms having Fantuan logos round their companies.
HungryPanda and Fantuan supply app signage seen on a doorway in Chinatown, NYC.
Alex Harring | CNBC
In Flushing, “I can see numerous Fantuan emblem[s],” mentioned Chau, who owns 5 shops within the New York Metropolis space. “I can’t see numerous Uber Eats or DoorDash.”
Wu additionally mentioned she sees the emblem repeatedly round areas with excessive charges of Asian companies like Flushing or Manhattan’s well-known Chinatown neighborhood. She’s additionally seen the supply drivers out sporting merchandise for each Fantuan and HungryPanda.
For Wu, the authenticity of eating places on Fantuan is best than different extra distinguished meals supply platforms. She additionally believes that critiques on Fantuan to be extra reliable.
“I can discover dishes that I am unable to discover on American meals ordering apps,” Wu mentioned. “I really feel prefer it’s undoubtedly the way in which to go if I am searching for a conventional Chinese language meal, slightly than utilizing Uber Eats or DoorDash to get one thing like orange hen.”
