Interview

Strategies to ensure customer retention | Exclusive interview with foodora

Wednesday 23 April 2025 10:24 CET | Editor: Estera Sava | Interview

Herbert Haas, Chief International Officer at foodora, discusses the ecommerce delivery vertical, elaborating on marketplace strategies for customer retention.

 

What can you tell us about foodora? How has the company evolved since its inception and foray into the ecommerce delivery vertical?

foodora is a delivery service present in the Nordic countries (Sweden, Norway, and Finland) and CEE (Czechia, Hungary, and Austria), created back in 2015.

Our mission is to deliver an amazing, fast, and affordable experience. Since its inception, foodora has evolved beyond restaurant delivery, expanding into quick commerce back in September 2020 in Sweden. Going into this vertical has enabled us to provide further convenience to our customers and new growth channels for retail businesses that were unable to digitalise their offering and consumer packaged goods (CPG) brands (i.e., Coca-Cola, Carlsberg) – and were interested in advertising their products on our platform.

We also operate proprietary stores in four of our six countries, called foodora markets. Now, customers can receive meals, groceries, and other retail items – like flowers, medicines, and so on – within 30 minutes.

How has your business model evolved over the years to ensure customer retention and satisfaction?

Throughout the years, we have continuously refined our business model to enhance customer retention and satisfaction by focusing on three key areas: choice, affordability, and product innovation.

Choice: offering the right selection is essential to providing our customers with the best options. This means securing strong partnerships with the most relevant restaurant and grocery partners in each country. For restaurants, working with brands like McDonald's, Burger King, and Pizza Hut is crucial to meeting customer demand. We also have local popular restaurant players like Lahden Kompassi in Finland, Wiki Wiki Poke or Noodle King in Austria, and Pong Group or Bastard Burgers in Sweden. For groceries, the market is more fragmented, requiring carefully selected local partners to ensure the right market fit. We are actively expanding our selection in the quick commerce segment by strengthening partnerships with local and global retailers, ensuring customers can access a wide range of groceries, convenience items, and everyday essentials. Some of our key grocery partnerships include REWE with PENNY, BILLA and BIPA in Austria, Tesco in Hungary, Albert, Globus, and Dr. Max in Czechia, S-Group in Finland, Coop and ICA in Sweden, and Joker from NorgesGruppen in Norway.

Affordability: to make our service more accessible, we launched foodora PRO in 2023, our subscription programme that allows customers to save with free delivery and exclusive discounts from restaurants and shops. Beyond PRO, we also run regular deals and discount campaigns in partnership with vendors, enabling customers to enjoy their meals or grocery orders at a cheaper price, along with free delivery offers.

New products: we continue introducing new features that enhance the customer experience. foodora Wallet (launched in Austria, expanding to more countries in 2025) is a fintech product that allows users to get faster refunds and receive cash back during special campaigns, improving both customer loyalty and partners’ revenue. We also launched Saver Delivery, a new delivery option live in Austria and Finland, expanding now in Hungary and Czechia. This option complements Scheduled, Prio, and Standard Delivery. Saver Delivery offers up to 15% savings compared to Standard fees, designed for customers who prioritise affordability and are comfortable with slightly longer delivery times. For now, it’s only available for restaurant orders.

What role do partnerships with companies across the ecosystem play in incentivising repeat consumer purchases, and can you give us a few examples of such endeavours and whether they’ve been successful?

Strategic partnerships are pivotal in making the brand more recognisable and enhancing customer retention and satisfaction, enriching the overall experience in the app. By collaborating with companies across various sectors, we introduce unique benefits that resonate with our customers, encouraging repeat engagements.

In September 2024, we partnered with Spotify, offering eligible foodora PRO customers a four-month free trial of Spotify Premium. This initiative allowed users to enjoy ad-free music streaming alongside our delivery services, seamlessly integrating entertainment into their daily routines. This collaboration not only added value to our subscription model but also strengthened customer loyalty by aligning with their entertainment preferences.

Additional partnerships are with CPG companies. Coca-Cola Company, PepsiCo, Red Bull, Unilever, and Carlsberg can advertise their products via retail media on our platform. It supports their sales targets and teases customers' attention. 

It goes without saying that well-known food businesses like Starbucks, Domino's, Burger King, and McDonald's are incredibly popular for delivery. Not having them on our platform would be inadvisable, as their presence boosts customer retention and repeat orders, which, in turn, supports our partners' revenues.

We are also in talks with several banks to offer PRO as part of their current offering, so we can attract new customers and retain them thanks to the subscription model.

How do payment methods such as Open Banking and Buy Now, Pay Later (BNPL) respond to customer demand for highly personalised and convenient experiences?

Integrating diverse payment methods like Open Banking and BNPL caters to the growing consumer demand for more options to pay for their orders. These options offer flexibility and streamline transactions, which enables the best customer experience on the platform and increases conversion.

In August 2024, we partnered with Trustly to introduce an Open Banking payment solution. This collaboration allows customers to pay directly from their bank accounts without needing credit or debit cards, resulting in faster and more secure transactions. Initially launched in Finland, we plan to expand this service to Norway, Sweden, Czechia, and Austria. This integration simplifies the payment process and reduces transaction costs and processing times, improving the customer experience and encouraging repeat usage. 

We've also integrated Klarna into our platform, enabling customers to choose payment plans that suit their financial preferences, especially for pricey items. Such a payment method offers customers greater control over their expenditures and enhances their overall satisfaction. Also, since February 2025, customers in Sweden, Norway, and Finland have been able to use Klarna as a payment method for our foodora PRO subscription service, with Austria to follow. This integration offers subscribers flexible payment options, making the subscription process more convenient and tailored to individual preferences. Finally, we’ve just launched in March 2025 Apple Pay for foodora PRO, which has been a great additional payment method for this programme, as we’ve seen a significant increase in our enrolment rate.

Can you exemplify some of foodora’s approaches to delivery and how they help ensure business success?

We experiment with different methods to better understand their impact on customer satisfaction, operational efficiency, and environmental sustainability.

For example, our product itself, foodora, offers different delivery options so customers have the flexibility to choose what they prefer. Beyond Scheduled and Standard Delivery, we’ve launched Saver Delivery in December 2024 in most Finnish and Austrian cities. Prio Delivery is the fourth option, dedicated to customers seeking speed. It provides faster delivery times for an additional fee.

In terms of sustainable solutions, we know we have a role to play in reducing our carbon footprint, and customers are increasingly climate-sensitive.

We are experimenting with EVs like electric mopeds in Sweden in partnership with GoCiklo.  In June 2024, foodora Sweden expanded this collaboration, introducing 40 additional electric mopeds equipped with battery-swapping technology in Stockholm and Gothenburg. We now have over 100 environmentally friendly vehicles, each reducing carbon dioxide emissions by up to two tons per year.

In Austria, riders in foodora’s fleet only drive bicycles or e-bikes, promoting eco-friendly transportation methods and reducing the company's carbon footprint.

We are also launching deliveries with drones and ground robots. This type of delivery service aims to make deliveries more efficient while minimising environmental impact. The drones enable us to reach places that are hard to get to by other modes of transport.

In Sweden, we initiated drone delivery services in areas near Stockholm in February using electric drones. In March 2025, in collaboration with Starship Technologies, we also launched ground robot deliveries in Södermalm that deliver from our foodora markets.

About Herbert Haas

Herbert Haas became the Chief International Officer (CIO) of foodora in August 2024. He oversees country management, supporting local Managing Directors, driving market cohesion, and shaping long-term strategy. Previously, he was Managing Director of foodora Austria, focusing on growth and profitability. Herbert spent six years at BCG in the US and worked at KPMG. He began his career in his parents’ electronics store and studied at WU Vienna and UVA Darden.


About foodora

foodora is a delivery service operating in six European countries – Austria, Czechia, Hungary, Finland, Norway, and Sweden. foodora’s mission is to deliver an amazing, fast, affordable delivery experience connecting customers with businesses and riders. foodora delivers a variety of products, including groceries, household products, and restaurant meals in 30 minutes or less. foodora is part of Delivery Hero, the world's leading local delivery platform.


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Keywords: ecommerce, marketplace, online shopping, delivery, quick commerce, partnership, Open Banking, BNPL, paytech, subscription commerce, customer experience, loyalty programme, payment methods, sustainability , carbon footprint
Categories: Payments & Commerce
Companies: foodora
Countries: Europe
This article is part of category

Payments & Commerce

foodora

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