In recent years, major food delivery apps catering to Chinese-speaking customers have set their sights on a larger share of the US and global markets, driven by the expanding Asian population.
Apps like Fantuan, Chowbus, and HungryPanda originally designed to facilitate orders in Chinese have now amassed millions of users. Crystal Li, public relations manager at Fantuan, emphasized the company’s strategic focus on broadening its reach, especially in the vast US market.
Fantuan currently boasts over 3.6 million users across four countries: the US, Canada, Australia, and the UK, catering not only to immigrants and international students but also to local Asians and enthusiasts of authentic Asian cuisine.
According to research by the Pew Research Center, there are approximately 120,000 Asian restaurants in the US, with nearly 40% offering Chinese cuisine. Key states like California, New Jersey, New York, Texas, and Washington host around 45% of these Asian eateries, reflecting significant Asian populations.
The COVID-19 pandemic severely impacted Asian restaurants due to anti-Asian sentiments, resulting in a staggering $7.4 billion revenue loss in 2020, as per a 2023 study by Boston College, the University of Michigan, and Microsoft Research.
As businesses strive for recovery post-pandemic, food delivery apps are becoming integral for Asian restaurants in cities like Houston, Minneapolis, and San Jose, reported The New York Times. These apps provide a unique platform tailored to the specific preferences of Asian consumers, offering authentic dishes and Chinese language support.
Fantuan, headquartered in Vancouver, recently secured $40 million in Series C funding to penetrate the Asian food delivery market and enhance services for its global clientele. Meanwhile, UK-based HungryPanda has raised an impressive $220 million in capital since 2019.
With an estimated 40 million Asians residing in Fantuan’s operating countries, amounting to a market worth over $36 billion, the potential for growth is substantial. The Chinese immigrant population in the US has surged to 2.38 million, up from 1.8 million in 2010, according to US Census Bureau data.
Richard D. Alba, a distinguished professor emeritus at the City University of New York, notes the rapid increase in the Asian population, further substantiated by the fact that China sends the largest number of international students (300,000) to US universities.
To cater to this expanding demographic, apps like Fantuan are strategically acquiring competitors’ businesses, as seen in its recent acquisition of Chowbus’ delivery arm. This move, according to Li, will solidify Fantuan’s dominance in the US Asian delivery market.
Furthermore, Chowbus has diversified into restaurant management software, supporting over 1,000 clients, with a focus on assisting immigrant-owned establishments with technology and marketing.
HungryPanda, operating in 80 cities across 10 countries, is the leading overseas Asian food delivery platform, collaborating with over 60,000 merchants and serving a substantial user base of 3.5 million worldwide.
As these apps expand their services and offerings, their ambitions align with transforming into an “overseas Meituan,” mirroring the success of China’s dominant food delivery platform. With ongoing growth initiatives, these apps are poised to capture a significant share of the burgeoning Asian food market in the US and beyond.
