Foodpanda to Exit Thai Market Amidst Intense Competition
Delivery Hero announces withdrawal of food and grocery delivery services in Thailand, citing strategic optimization
Foodpanda will cease operations in Thailand on May 23, as announced by its parent company Delivery Hero.
The decision aligns with the company's strategy to optimize its geographic presence, following previous withdrawals from countries such as Denmark, Ghana, Slovakia, and Slovenia.
Delivery Hero will continue to focus on other parts of Asia Pacific where it sees greater potential for returns.
The Thailand-based regional team providing services like marketing and human resources for the Asia-Pacific region will remain operational.
Foodpanda has been facing challenges in the competitive Thai food delivery market, holding a market share of nearly 15%, behind Lineman Wongnai with 44% and GrabFood with 39.4%.
The Thai food delivery market is valued at approximately 86 billion baht, with only GrabFood reporting modest profits.
Foodpanda has accumulated net losses of 13.8 billion baht from 2014 to 2023. Last year, Delivery Hero attempted to sell part of the Foodpanda business in Southeast Asia but was unable to reach an agreement with potential buyers.
The company's regional team will continue to support employees, customers, partners, and riders during the transition period.
The decision aligns with the company's strategy to optimize its geographic presence, following previous withdrawals from countries such as Denmark, Ghana, Slovakia, and Slovenia.
Delivery Hero will continue to focus on other parts of Asia Pacific where it sees greater potential for returns.
The Thailand-based regional team providing services like marketing and human resources for the Asia-Pacific region will remain operational.
Foodpanda has been facing challenges in the competitive Thai food delivery market, holding a market share of nearly 15%, behind Lineman Wongnai with 44% and GrabFood with 39.4%.
The Thai food delivery market is valued at approximately 86 billion baht, with only GrabFood reporting modest profits.
Foodpanda has accumulated net losses of 13.8 billion baht from 2014 to 2023. Last year, Delivery Hero attempted to sell part of the Foodpanda business in Southeast Asia but was unable to reach an agreement with potential buyers.
The company's regional team will continue to support employees, customers, partners, and riders during the transition period.
