How Oddle made oodles of money from helping F&B operators go online

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Hello reader,

An acquaintance was ranting to me the other day about how it seems like all tech startups want to do is to post promising growth numbers to attract big funding rounds. Whatever happened to gunning for profitability, he huffed. It’s not sustainable, he puffed.

Well, hopefully today’s premium article about Singapore-based Oddle helps to soothe his frustration. In two years of operations, the restaurant tech startup’s food delivery solution has been in the black.

Oddle achieved this by catering (pun intended) to a more premium user base, among other strategies. Read on to find out more.

Today we look at:

• How Oddle has built a profitable food delivery business
• The launch of a new priority digital investment service by Indonesia-based Ajaib
• Other newsy highlights such as the declared bankruptcy of an Indonesian furniture retailer and the exit of ShopBack’s chief commercial officer after five years in the role

Premium summary

More than one way to skin a cat

Image credit: Timmy Loen

When food delivery is brought up, GrabFood, Foodpanda, or Deliveroo are usually top of mind. Goodness knows I’ve ordered way too much pizza from GrabFood.

However, while these household names are still working their way towards breaking even, Singapore-based Oddle’s delivery arm has been turning a profit since 2020.

How did they do it?

• Lower price, more signups: While other food delivery marketplaces were charging restaurants commission fees of up to 35%, Oddle won them over with a more palatable 10% commission, which it maintains to this day. That strategy has paid off: Oddle now handles delivery and takeaways for 7,000 restaurants across Southeast Asia.
• A different clientele: Unlike the likes of GrabFood and Foodpanda, Oddle manages food deliveries from a single restaurant to a single customer at any time. This drives up delivery fees, which range between S$12 to S$36 (US$8.50 to US$25.50). Consumers who land on Oddle Eats, its online restaurant directory, typically aren’t searching for food on demand. Instead, they’re looking to host a dinner, arrange a family meal, or craving dishes from a specific restaurant.
• What’s next? Profits from its food delivery business have also freed up resources, allowing Oddle to pursue other revenue streams including financial services. The firm is working with Goldbell Financial Services, which is also an investor, to provide quick loans to restaurants that need financing.

Read more: Oddle built a profitable food delivery business. Here’s how

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