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

CNBC

2 days ago

NEW YORK – When Kelly Wu feels sick and wants a delivery of congee, the Chinese porridge she grew up eating, she opts for a platform many may not have heard of.
The New York City resident doesn't open apps from multi-billion dollar companies like Uber Eats or DoorDash. Instead, the 22-year-old pulls up Fantuan, a growing Vancouver-based startup that focuses specifically on the ecosystem surrounding Asian cuisines.
"I feel like it's just the equivalent of 'Asian' DoorDash or Uber Eats," Wu said in an interview with CNBC.
Digital food ordering and delivery platforms have become ingrained in everyday American life over the past decade, with companies like Uber Eats, DoorDash and GrubHub becoming household names. But when it comes to Asian food, connoisseurs like Wu and restaurant owners are opting for smaller platforms like Fantuan or competitor HungryPanda.
Fantuan's strategy looks different than that of bigger food platforms given its focus on Asian businesses, according to co-founder Yaofei Feng.
The 11-year-old company sends representatives to talk to store owners in person about getting on the platform rather than trying to reach them online, Feng said. These conversations will often take place in Chinese, given that he said many of these entrepreneurs speak English as a second language.
"The way we gain their trust is very unique," Feng said.
Having options besides English for the app is appealing for business owners who find it easier to communicate in their first language. The app design is also more reminiscent of Chinese platforms like Alibaba than American alternatives, Feng said, which can provide a sense of familiarity.
Since Fantuan first entered the U.S. in 2019, Feng said it has expanded to more than 50 cities ranging from large metropolises such as Los Angeles to college towns like Davis, Calif. The company's U.S. footprint was boosted by its acquisition of Chowbus' delivery business last year.
Rather than run large advertising campaigns, Fantuan mainly spreads the word through providing sign holders at storefronts and stickers for delivery drivers. The startup has also worked with influencers on platforms like TikTok and RedNote, a popular short-form video app in China.
Feng said Fantuan's main customer bases are first-generation immigrants and international students craving authentic cuisines tied to their home countries. He said the company meets with college student associations to find potential customers coming to the U.S. from Asia.
But Feng said there's potential for the app to reach a wider audience as foods including bubble tea become mainstream in the U.S. The company said it saw a growth rate for gross merchandise value of more than 20% in the U.S. last year, before shooting up to 31% in the first quarter of 2025.
"With the immigration and the social media, everybody loves Asian food," Feng said. "If they want authentic options, they will also use the app."
Following the Chowbus acquisition, many business owners and users consider HungryPanda as the main competitor to Fantuan. Wu said she also has HungryPanda's app, but hasn't ordered on it since she first began using Fantuan, and has been pleased with the service.
HungryPanda did not respond to CNBC's interview inquiry for this story. HungryPanda announced last year that it raised $55 million, which will be used in part to fuel expansion efforts in North America.
When it comes to the broader food delivery app landscape, Feng said he sees the company "co-existing" alongside bigger-name companies rather than "competing." That's because the draw of Fantuan is connecting authentic – and often smaller – businesses to customers instead of trying to win over large chains that already use other platforms.
"It's very hard ... long-term, to compete with the monopolies," he said. "But we want to keep our unique way."
In Flushing, a neighborhood of New York City's Queens borough known for its large population of Chinese-Americans, Andrew Chau sees first-hand how the customer base has taken to Fantuan.
Chau said his outpost of Yomie's Rice x Yogurt sees around 50 orders each day on the platform. By comparison, Chau said he's lucky to get one order every few days on apps like Uber Eats or DoorDash.
Chau likes that the app offers users promotions and that he can communicate with customer service through WeChat, a popular messaging platform in China. He also said many restaurants nearby use the platform, as evidenced by companies having Fantuan logos around their businesses.
In Flushing, "I can see lots of Fantuan logo[s]," said Chau, who owns five stores in the New York City area. "I cannot see lots of Uber Eats or DoorDash."
Wu also said she sees the logo regularly around areas with high rates of Asian businesses like Flushing or Manhattan's well-known Chinatown neighborhood. She's also seen the delivery drivers out wearing merchandise for both Fantuan and HungryPanda.
For Wu, the authenticity of restaurants on Fantuan is better than other more prominent food delivery platforms. She also believes that reviews on Fantuan to be more trustworthy.
"I can find dishes that I can't find on American food ordering apps," Wu said. "I feel like it's definitely the way to go if I'm looking for a traditional Chinese meal, rather than using Uber Eats or DoorDash to get something like orange chicken."