Grab's Success Amid Struggling Thai Food Delivery Sector
Only Grab has been profitable for two consecutive years among Thailand's main food delivery services. Grab saw revenue rise to 15.622 billion baht in 2023 with a profit of 1.308 billion baht. Competition and high costs led to the termination of Robinhood, evidenced by its 2.155 billion baht loss in 2023.
Among the four major food delivery service providers in Thailand — Grab, Line Man, Robinhood, and foodpanda — only Grab has maintained profitability for two consecutive years.
Grab Taxi (Thailand) Co Ltd recorded a revenue of 15.197 billion baht in 2022 with a profit of 576 million baht, increasing to 15.622 billion baht in revenue and 1.308 billion baht in profit in 2023.
Line Man saw revenue rise from 7.802 billion baht in 2022 to 11.634 billion baht in 2023, reducing its losses significantly from 2.730 billion baht to 253 million baht.
Foodpanda, under Delivery Hero (Thailand) Co Ltd, increased its revenue to 3.843 billion baht in 2023, from 3.628 billion baht in 2022, while reducing losses from 3.255 billion baht to 522 million baht.
Robinhood encountered substantial challenges, with its revenue growing from 538 million baht in 2022 to 724 million baht in 2023, but losses increasing from 1.986 billion baht to 2.155 billion baht, eventually leading to its termination as announced by SCBX Pcl.
The intense competition, high operational costs, and lack of differentiation strategies have posed significant challenges for food delivery operators.
Insights derived from customer data and adaptive strategies remain a key to future success in this competitive sector, according to Assistant Professor Buppa Lapawattnaphun of the University of the Thai Chamber of Commerce.
Grab Taxi (Thailand) Co Ltd recorded a revenue of 15.197 billion baht in 2022 with a profit of 576 million baht, increasing to 15.622 billion baht in revenue and 1.308 billion baht in profit in 2023.
Line Man saw revenue rise from 7.802 billion baht in 2022 to 11.634 billion baht in 2023, reducing its losses significantly from 2.730 billion baht to 253 million baht.
Foodpanda, under Delivery Hero (Thailand) Co Ltd, increased its revenue to 3.843 billion baht in 2023, from 3.628 billion baht in 2022, while reducing losses from 3.255 billion baht to 522 million baht.
Robinhood encountered substantial challenges, with its revenue growing from 538 million baht in 2022 to 724 million baht in 2023, but losses increasing from 1.986 billion baht to 2.155 billion baht, eventually leading to its termination as announced by SCBX Pcl.
The intense competition, high operational costs, and lack of differentiation strategies have posed significant challenges for food delivery operators.
Insights derived from customer data and adaptive strategies remain a key to future success in this competitive sector, according to Assistant Professor Buppa Lapawattnaphun of the University of the Thai Chamber of Commerce.
