The operator of the Robinhood application, Yip In Tsoi, is reportedly interested in acquiring the online food delivery business of Foodpanda, which is planning to exit the Thai market on May 23.
A source from Yip In Tsoi, wishing to remain anonymous, mentioned that the company is assessing the business potential.
The source further mentioned that the company aims to prevent the online food delivery market from becoming dominated by only a few players.
Berlin-based Delivery Hero, which manages various food delivery platforms globally, announced last week its decision to shut down the Foodpanda platform next month due to accumulated losses of 13 billion baht.
According to Momentum Works, a Singapore-based research firm, Thailand’s food delivery market in 2024 was valued at $4.2 billion, with Grab holding a 46% share, Line Man Wongnai 40%, ShopeeFood 7%, Foodpanda 5%, and Robinhood 2%.
Last year, Robinhood nearly ceased operations until a group of investors led by Yip In Tsoi struck a deal with SCB X to buy all shares in Purple Ventures Co Ltd, the Robinhood operator, for 2 billion baht in late September.
Robinhood maintains a database of small restaurants, while Foodpanda boasts a comprehensive database that includes many medium to large establishments.
Yod Chinsupakul, CEO of Line Man Wongnai, expressed that Foodpanda’s departure could lead to a de facto duopoly in Thailand’s food delivery sector.
Despite changes in market players, the overall market structure remains stable with competition levels consistent, according to Mr. Yod.
Mr. Yod noted that Foodpanda’s exit might shift the competitive focus from price to quality among the remaining operators.
This shift could pave the way for them to secure sustainable profits and accumulate resources for developing new services.
From the consumer’s viewpoint, Mr. Yod mentioned that the impact of Foodpanda’s exit would be minor as the variety of service options remains unchanged, particularly with Line Man covering all 77 provinces in Thailand.
However, certain driver and vendor groups may need to transition to other platforms if Foodpanda’s exit proceeds as planned.
Line Man Wongnai has expressed readiness to assist these groups to ensure continuous income and prevent any temporary job or business disruptions.
Chantsuda Thananitayaudom, country head of Grab Thailand, observed that the Thai food delivery market is continuously evolving, driven by changes in consumer behavior and competitive dynamics.
Challenges and Opportunities
According to Ms. Chantsuda, Grab views the evolving landscape as filled with both opportunities and challenges.
Despite changes in the market, the inherent complexities of the food delivery industry remain, particularly in terms of achieving a balanced ecosystem that includes users, drivers, merchant-partners, and the platform itself.
A central goal is to adeptly manage this ecosystem to ensure satisfaction and value for all stakeholders, a process that requires continuous learning and strategic adjustments.
“Recent developments in the food delivery space have affirmed that the strategies we’ve implemented and refined over the past two to three years are on the right track,” she said. “Our focus has been on sustainable growth, with a strong emphasis on preserving ecosystem balance.”
“This is reflected in the company’s solid performance. We are the only player in the market to have remained profitable for two consecutive years.”
Ms. Chantsuda remarked that initially, the industry was driven by aggressive promotions, which created what she described as “artificial demand.”
“We have since shifted our focus toward enhancing service quality and the overall user experience,” she explained. “We continue to innovate to meet evolving needs and foster user loyalty, including through initiatives such as our GrabUnlimited subscription.”
Furthermore, the company remains proactive in using promotions and discounts strategically to keep the platform dynamic and engaging, she added.
