Working unceasingly to ensure that micro, small, and medium enterprises (“MSMEs”) receive the support they need are online digital platforms like foodpanda. To help even more small businesses, foodpanda has partnered with Online Food Vendors Marketing Cooperative (“OFVMC” or the “Cooperative”). The collaboration aims to boost the assistance provided to these Filipino entrepreneurs so they can gain a wider audience and establish a name in the online marketplace.
According to foodpanda Philippines Finance Director Lhecks De Castro, platforms like them enable MSMEs to achieve sustainable growth by having a wider reach while making their operations more efficient.
“Even beyond the new normal, there are still plenty of benefits that MSMEs can enjoy by getting access to digital platforms, including increased productivity, improved profitability, and reduced operational costs,” said De Castro. “However, transitioning to digital platforms might be challenging for them. But with the combined assistance between us and OFVMC, they can navigate through this transition.”
Cooperative for small businesses
Under RA 9520, also known as the Philippine Cooperative Code of 2008, the creation and formation of cooperatives is said to promote the attainment of economic development.
While different types of cooperatives exist in the country, OFVMC focuses on online food vendors. Its goal is to assist micro and small entrepreneurs seeking to reach a wider market while offering educational seminars beneficial to running their business operations and other privileges given to official members.
“For businesses which are just start-ups, joining the Cooperative will encourage member contribution and shared responsibility, not to mention the opportunity to earn interest in their share capital and expand their network in the industry as businesses,” De Castro revealed.
Success stories from members
The owner of Mom Rose Lechon Manok in Bacolod, Michael Vincent Chua, was one of the many members who are grateful for joining the foodpanda platform through the help of the Cooperative. “We started our business in 2020 when people preferred getting their orders online. Since joining, we were able to grow our business,” he narrated. “Thanks to both the Cooperative and foodpanda, we are happy to share that we are now opening our 4th store this month.”
Also operating in Bacolod, Charisma Libo-on of Chayim Tea House deeply appreciates how the Cooperative provides educational materials for their members on how some business requirements work. “It shows how they really care about us. I’ve gained valuable knowledge and insights on these processes.” On the other hand, she also likes that foodpanda provides that same added value service. “I like how it is a data-driven company, so the promotions and campaigns offered and endorsed to us are well-thought-of. I’m very satisfied with the combination.”
She also happily revealed that being on the platform even for just a year opened many opportunities for them, including expanding their shop and providing job opportunities to more employees under her wing.
Helping MSMEs go digital
foodpanda expressed its continued commitment to helping small-scale Filipino businesses as they are believed to be the backbone of Philippine economic recovery. Furthermore, this initiative aligns with the government’s goal to usher in the digital transformation of MSMEs, as their growth will immensely contribute to the country’s overall economic development.
During several functions and official gatherings, President Ferdinand Marcos Jr. also emphasized that ushering in the digital transformation of MSMEs is one of the key priorities of the current administration. In addition, a measure seeking to amend the Republic Act 6977, also known as Magna Carta for Micro, Small, and Medium Enterprises (MSMEs), is also in the works, which hopes to promote entrepreneurship by strengthening, empowering and enhancing financing and other support programs for MSMEs.
It was also recently announced that PHP1.2 billion would fund the MSME Development Plan and other Department of Trade and Industry (DTI) initiatives to promote the growth of MSMEs.
De Castro shared that they will support the initiatives by the government to support small businesses as they face challenges. “Several factors can hold them back, which can make them more risk-averse in scaling up and officially start onboarding with an online food delivery digital platform.”
However, De Castro assured that foodpanda has processes and initiatives to address that to aid MSMEs in their journey toward digitalization. “While challenges are ever-present, partnering with us also brings numerous benefits. The fees they pay to be on the platform are commensurate with the benefits they receive, including promotional programs, delivery subsidies, and platform development, which aims to help MSMEs increase their revenue or boost their sales,” he concluded.
