Yip In Tsoi, who runs the Robinhood app, is eyeing the online food delivery business of Foodpanda, which is set to leave Thailand on May 23. An unnamed source from Yip In Tsoi mentioned that the company is thinking about the potential of this business. They don’t want the online food delivery market to turn into a duopoly, the source added.
The food delivery market in Thailand raked in US$4.2 billion in 2024, according to Momentum Works, with Grab holding 46% of the market share, Line Man Wongnai with 40%, ShopeeFood at 7%, Foodpanda at 5%, and Robinhood at 2%. Last year, SCB X Plc used to own Purple Ventures Co Ltd, the company behind the Robinhood app, before selling all the shares to investors led by Yip In Tsoi. Robinhood focuses on small restaurants, while Foodpanda has a larger database, especially for medium to large restaurants.
Line Man Wongnai’s CEO, Yod Chinsupakul, noted that Foodpanda’s exit will create a clear duopoly in the Thai food delivery industry. LINE MAN held a 44% market share in transaction volume during the first half of 2024, while Foodpanda only had about 5%. Despite changes in the number of players, the market structure has remained stable, with competition staying at a similar level.
Yod believes that Foodpanda’s departure could mark a shift from a price war to a quality war among the remaining players. This change may lead to sustainable profit-making and allow for investments in new services. He reassured consumers that despite Foodpanda leaving, they will still have plenty of service options, especially with LINE MAN covering all 77 provinces nationwide. This ensures that users can switch platforms without losing access to their favorite local restaurants.
However, some drivers and vendors will be affected by Foodpanda’s exit as they need to transition to other platforms. LINE MAN Wongnai has stepped up to support this group to ensure a smooth income flow and prevent temporary unemployment or business disruptions.
Grab Thailand’s country head, Chantsuda Thananitayaudom, commented on Foodpanda’s exit, highlighting the continuous transformation of Thailand’s food delivery market due to changing consumer behaviors and competitive dynamics. She sees both opportunities and challenges in this evolving landscape. Chantsuda emphasized the importance of maintaining balance across the ecosystem, which includes users, drivers, merchant-partners, and the platform itself.
She mentioned that Grab has remained profitable for two consecutive years by focusing on sustainable growth and enhancing service quality. The company has shifted its strategy from aggressive promotions to improving user experience and loyalty. Grab continues to innovate to meet evolving needs and promote user loyalty through initiatives like GrabUnlimited subscription.
Chantsuda stressed the importance of staying informed about competitors and market trends to adapt strategically. She also highlighted the use of promotions and discounts to keep the platform engaging for users. Grab’s performance reflects its commitment to maintaining ecosystem balance and delivering value for all parties involved.
In conclusion, the departure of Foodpanda from Thailand may lead to a shift in the food delivery market dynamics, with players focusing more on service quality and innovation. The remaining companies will need to adapt to the changing landscape to ensure sustainable growth and customer satisfaction. It is essential for businesses to stay informed about market trends and competitors to stay ahead in this evolving industry.
