Beneath-the-radar supply apps are gaining floor within the U.S. by courting Asian eating places

NEW YORK – When Kelly Wu feels sick and needs a supply of congee, the Chinese language porridge she grew up consuming, she opts for a platform many might not have heard of.

The New York Metropolis resident would not open apps from multi-billion greenback corporations 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 grow to be ingrained in on a regular basis American life over the previous decade, with corporations like Uber Eats, DoorDash and GrubHub turning into family names. However with regards to Asian meals, connoisseurs like Wu and restaurant homeowners are choosing smaller platforms like Fantuan or competitor HungryPanda.

Fantuan’s technique seems to be completely different than that of larger meals platforms given its deal with Asian companies, in response to co-founder Yaofei Feng.

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

“The best way we achieve their belief could 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 paying homage 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 giant metropolises equivalent to Los Angeles to school cities like Davis, Calif. The corporate’s U.S. footprint was boosted by its acquisition of Chowbus’ supply enterprise final yr.

Fairly than run giant 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 principal 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 pupil associations to seek out potential clients 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 grow to be mainstream within the U.S. The corporate stated it noticed a development fee for gross merchandise worth of greater than 20% within the U.S. final yr, earlier than capturing as much as 31% within the first quarter of 2025.

“With the immigration and the social media, everyone 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 contemplate 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 yr that it raised $55 million, which will likely be utilized in half to gasoline growth efforts in North America.

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

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

In Flushing, a neighborhood of New York Metropolis’s Queens borough recognized for its giant inhabitants of Chinese language-Individuals, Andrew Chau sees first-hand how the shopper 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 presents 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 corporations having Fantuan logos round their companies.

In Flushing, “I can see plenty of Fantuan brand[s],” stated Chau, who owns 5 shops within the New York Metropolis space. “I can’t see plenty of Uber Eats or DoorDash.”

Wu additionally stated she sees the emblem 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 sporting 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 critiques 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 undoubtedly the way in which to go if I am on the lookout for a standard Chinese language meal, relatively than utilizing Uber Eats or DoorDash to get one thing like orange rooster.”