Market capitalization decreased by 0.6% compared to last year
Food delivery and ride-hailing platform operators are expanding their businesses amid the economic downturn, primarily through mergers and acquisitions, cross-platform collaborations, and planned initial public offerings (IPOs).
The market value of the food delivery business this year is estimated at 86 billion baht, down 0.6% from 2022, according to Kasikorn Research Center.
Although the average spend per order for food delivery is expected to increase, the volume of food ordered through the platform is expected to decline by 11.3% due to changes in consumer behavior.
According to the research centre, online food delivery businesses face challenges related to operating costs and financial expenses, resulting in the need for continuous adjustments by platform operators to maintain business sustainability. It is said to become.
food solutions
Worachat Luxkanalode, country head of Grab Thai, said the company is working to become a food experience and solutions provider by offering more features such as restaurant dining, self-pickup, and group ordering. He said the focus is shifting away from delivery.
He added that Grab Thailand will build more use cases and food solution marketing tools to help restaurants expand their customer base.
Grab Thai also has GrabUnlimited, a discounted monthly membership package. This program increases customer loyalty and saves marketing spend. Currently, his 50% of GrabFood users are also his GrabUnlimited subscribers.
Worachat declined to comment on speculation that Grab was among potential buyers for rival Foodpanda, saying consolidation was likely to occur because the food delivery market has too many players. Ta.
Cross-platform partnership
Delivery Hero’s previous statement acknowledged that it was in talks with multiple parties regarding the potential sale of its Foodpanda operations in certain Southeast Asian markets. All discussions and plans are in the preliminary stages.
Meanwhile, Foodpanda Thailand has extended its partnership with AirAsia Super Up, which will be renamed AirAsia MOVE.
The partnership will give airasia Superapp users access to Foodpanda’s nationwide food delivery service, and Foodpanda customers will have access to airasiaride’s affordable ride-hailing service.
Foodpanda Thailand CEO Siripa Jansawat said the partnership will strengthen Foodpanda by providing a complete and seamless service experience to existing users of both apps and expanding its customer base. .
He added that this partnership will result in a more inclusive and sustainable business ecosystem. Apart from Foodpanda Thai, airasia Superapp also partnered with Foodpanda Malaysia in May this year.
Ben-Jie Lim, Head of Partnerships and Global Markets at airasia Superapp, said the partnership will strengthen both applications, introduce users to innovative services that meet diverse needs, and improve overall convenience. Then he said.
Foodpanda users can seamlessly access ride-hailing services directly through the app, facilitating more convenient and efficient travel within Bangkok, all at attractive prices, he added.
Additionally, for every 15 baht spent on AirAsia ride services on the Foodpanda app, users will earn 1 AirAsia point, which can be redeemed for various products and services on the AirAsia Super app.
Acquisition and listing
Lineman Wongnai was previously rumored to be acquiring Foodpanda. The company recently acquired FoodStory, a Thai startup specializing in restaurant POS systems.
In August, Line Man Wonnai and Line Thailand jointly transferred the shares of payment company Rabbit Line Pay Company (RLP) to the latter’s shareholders, Rabbit Pay System Company and Advanced mPAY. Obtained from two companies. With this transaction, Line Man Wonnai became the company’s largest shareholder. R.L.P.
RLP was officially rebranded to Line Pay on October 18, 2023.
Lineman Wongnai CEO Yod Chinspakul previously said the company sees electronic payment opportunities in Thailand growing. The acquisition of RLP shares is an important milestone in the company’s growth.
“We are open to organic growth, acquisitions and partnerships, paving the way for Line Man Wonnai’s IPO by 2025,” Yod said.
Bloomberg reported in September that Lineman Wong Nai had begun preparations for an IPO in Bangkok that could raise about 10 billion baht, according to people familiar with the matter.