Under-the-radar delivery apps are gaining ground in the U.S. by courting Asian restaurants

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 could not have heard of.

The New York Metropolis resident does not open apps from multi-billion greenback firms like Uber Eats or DoorDash. As a substitute, 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 stated in an interview with CNBC.

Digital meals ordering and supply platforms have turn into ingrained in on a regular basis American life over the previous decade, with firms like Uber Eats, DoorDash and GrubHub changing into family names. However in the case of Asian meals, connoisseurs like Wu and restaurant homeowners are using smaller platforms like Fantuan or competitor HungryPanda.

Fantuan’s technique seems totally different than that of larger meals platforms given its concentrate on Asian companies, in keeping with co-founder Yaofei Feng.

The 11-year-old firm sends representatives to speak to retailer homeowners in individual about getting on the platform fairly than attempting to achieve them on-line, Feng stated. These conversations will usually happen in Chinese language, provided that he stated many of those entrepreneurs communicate English as a second language.

“The way in which we achieve their belief may be very distinctive,” Feng stated.

Having choices apart from English for the app is interesting for enterprise homeowners who discover it simpler to speak of their first language. The app design can also be extra harking back to Chinese language platforms like Alibaba than American options, Feng stated, which might present a way of familiarity.

Since Fantuan first entered the U.S. in 2019, Feng stated it has expanded to greater than 50 cities starting from massive metropolises equivalent to Los Angeles to varsity 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 massive promoting campaigns, Fantuan primarily spreads the phrase by means of 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 stated Fantuan’s foremost buyer bases are first-generation immigrants and worldwide college students craving genuine cuisines tied to their dwelling international locations. He stated the corporate meets with school scholar associations to seek out potential prospects coming to the U.S. from Asia.

However Feng stated there’s potential for the app to achieve a wider viewers as meals together with bubble tea turn into mainstream within the U.S. The corporate stated it noticed a development price 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, all people loves Asian meals,” Feng stated. “If they need genuine choices, they may also use the app.”

Following the Chowbus acquisition, many enterprise homeowners and customers take into account HungryPanda as the primary competitor to Fantuan. Wu stated 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 might be utilized in half to gasoline enlargement efforts in North America.

In relation to the broader meals supply app panorama, Feng stated he sees the corporate “co-existing” alongside bigger-name firms fairly than “competing.” That is as a result of the draw of Fantuan is connecting genuine – and infrequently smaller – companies to prospects as an alternative of attempting to win over massive chains that already use different platforms.

“It’s extremely arduous … long-term, to compete with the monopolies,” he stated. “However we wish to hold our distinctive manner.”

In Flushing, a neighborhood of New York Metropolis’s Queens borough recognized for its massive inhabitants of Chinese language-Individuals, Andrew Chau sees first-hand how the client base has taken to Fantuan.

Chau stated his outpost of Yomie’s Rice x Yogurt sees round 50 orders every day on the platform. By comparability, Chau stated he is fortunate to get one order each few days on apps like Uber Eats or DoorDash.

Chau likes that the app provides customers promotions and that he can talk with customer support by means of WeChat, a well-liked messaging platform in China. He additionally stated many eating places close by use the platform, as evidenced by firms having Fantuan logos round their companies.

In Flushing, “I can see a lot of Fantuan emblem[s],” stated Chau, who owns 5 shops within the New York Metropolis space. “I can not see a lot of Uber Eats or DoorDash.”

Wu additionally stated she sees the brand often 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 carrying merchandise for each Fantuan and HungryPanda.

For Wu, the authenticity of eating places on Fantuan is healthier than different extra distinguished meals supply platforms. She additionally believes that evaluations on Fantuan to be extra reliable.

“I can discover dishes that I can not discover on American meals ordering apps,” Wu stated. “I really feel prefer it’s positively the way in which to go if I am on the lookout for a standard Chinese language meal, fairly than utilizing Uber Eats or DoorDash to get one thing like orange rooster.”