Grab: Surpassing Foodpanda and ShopeeFood to dominate the Food Delivery market in Southeast Asia, Shopee and AirAsia must focus on the core segment

After a year of explosive investment in the Food segment, Shopee has downsized to focus on bringing profits to its core business, e-commerce, leaving part of the Food Delivery playground to Grab. Continuously being “ceded” by Foodpanda and ShopeeFood, Grab is currently the dominant brand in the food delivery market in 6 countries Vietnam, Singapore, Philippines, Malaysia, Indonesia and Thailand, accounting for 54% of the total GMV in the region.

Grab accounts for 54% of the GMV (total transaction value) of food delivery services in the region, followed by Foodpanda with 19% and Gojek with 12%, according to the report “Food Delivery Platform in Southeast Asia”. Asia” by Momentum Works – an in-depth information provider about 6 key food delivery markets in the region – made.

Grab has “robbed” the throne of Food Delivery in Malaysia and Vietnam from Foodpanda and ShopeeFood. ShopeeFood is gradually reducing its offers, and Foodpanda/DeliveryHero is rumored to be in the process of withdrawing from some markets in the region.

Mergers and exits from the industry may be imminent as food delivery companies cut costs and move towards profits, the report said.

“Competition has become much quieter in 2022 than it was in 2021. New entrants like Shopee and AirAsia have returned to focus on their core areas, while others The current company adopts a much more cautious expansion strategy,” said Mr. Jianggan Li, CEO and founder of Momentum Works.

“With profit growth at the forefront of today, food delivery providers are experimenting with a variety of strategies to improve delivery margins, bolstering consumer confidence. through advertising, membership program… We believe that profitability can be achieved through sales, wider coverage and higher operational efficiency.”

According to the report, the total spending on food delivery services in 2022 in Southeast Asian countries reached 16.3 billion USD, up 5% after 2 years of the delivery boom due to Covid-19. For the first time in three years, growth was driven mainly by the region’s smallest food delivery markets including the Philippines (+0.8 billion USD), Malaysia (+0.6 billion USD) and Vietnam. South (+0.3 billion USD).

As Covid-19 becomes endemic and economies reopen, larger markets like Singapore (-0.4 billion USD), Thailand (-0.4 billion USD) and Indonesia (- $0.1 billion) recorded a decline in GMV.

In line with growing profit pressures, existing and new food delivery service providers are continuing to cut support programs for food delivery, while strengthening competition based on on service quality.

By the end of 2022, Grab is estimated to reach $8.8 billion, accounting for 54% of the total GMV in food delivery in the region, up 16% year-on-year. Foodpanda is estimated to contribute $3.1 billion, accounting for 19% of the region’s GMV, down 9% from 2021.

Gojek and ShopeeFood are estimated to maintain the GMV of food delivery at $2.0 billion and $0.9 billion respectively in 2021.