Reports Circulate That foodpanda May Be Sold Off As Early As December
The brand's operations in seven Southeast Asian markets may be sold off by parent company Delivery Hero.
By Dale John Wong — 02 Nov 2023, 06:07 PM
Major food delivery operator foodpanda may be sold as soon as December 2023, according to circulating rumours
A report by New Straits Times has cited unnamed sources claiming that foodpanda, which is currently owned by German parent company Delivery Hero, may be sold off in seven different markets across Southeast Asia.
Presently, foodpanda's regional operations include chapters in Malaysia, Singapore, Thailand, the Philippines, Cambodia, Laos, and Myanmar.
This comes just over a month after initial rumours circulated regarding a possible sale of foodpanda to potential buyers
According to a Malay Mail report from late September, Singapore-based competitor Grab Holdings Ltd, which also rivals foodpanda in several of the previously mentioned markets, was thought to be the frontrunner for the acquisition of the brand.
Currently, foodpanda is the second-largest food delivery operator in Southeast Asia, holding between 30% to 40% of the region's market share in each country it has a presence in.
However, New Straits Times revealed that Delivery Hero's gross merchandise value in Asia has declined, according to its H1 2023 financial report.
In the report, the company saw a drop of 5.9% from EUR13.44 billion (RM67.72 billion) in the first half of 2022, down to EUR12.64 billion (RM63.69 billion) in the first half of 2023.
And in its financial report ending 31 December 2022, Delivery Hero Malaysia Sdn Bhd recorded a net loss of EUR52.2 million (RM263.03 million).
Should a sale to Grab Holdings go through, the region could experience a few notable consequences
For one, there exists a high probability of Grab's share prices skyrocketing following the exit of its nearest competitor, while the company may be pressed into making major operational moves.
As a result, other knock-on effects could include:
- Changes in earnings for vendors
- Incentive changes for delivery riders
- Pricing changes for consumers
- Pressure from shareholders to influence decision-making for better or worse
- A vacuum to be filled by a new challenger
The mooted buyout of foodpanda by Grab was rumoured to be in the region of EUR1 billion (RM5.04 billion), although it all remains speculative for now.
After being queried by SAYS, a representative from foodpanda declined to comment on the situation.
