German multinational Delivery Hero SE has announced plans to wind down its Foodpanda operations in Thailand by May 23, as part of a broader strategic realignment within the Asia-Pacific region.
The company stated that the move is aligned with efforts to optimise its “geostrategy,” redirecting focus to more profitable markets within the region. Despite the closure, Delivery Hero’s regional hub in Thailand will remain operational to support activities across the Asia-Pacific.
“We are grateful to our employees, customers, partners, and riders in Thailand, and remain committed to supporting them throughout this transition,” the company said in a statement.
Foodpanda has faced fierce competition in Thailand’s crowded food delivery market, where it holds just a 15% market share. The sector is currently led by Lineman Wongnai with 44%, followed by GrabFood at 39.4%, according to industry estimates.
Delivery Hero’s Thai unit has reportedly struggled to turn a profit during its 13-year tenure in the country. Although Asia remains Delivery Hero’s largest regional market, growth has stagnated in the post-pandemic period.
In September 2023, the company disclosed ongoing discussions to divest the Foodpanda brand in select Asian markets. However, by February 2024, Delivery Hero confirmed that talks had collapsed due to an inability to reach mutually agreeable terms.–FMT
