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Thailand’s Food Delivery Market Simmers Towards Consolidation

Nicole Kristine Jovero
Last updated: August 16, 2024 2:45 am
Nicole Kristine Jovero
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  • Thailand’s food delivery market heads towards consolidation.
  • Major players compete for dominance.
  • Only two or three platforms expected to survive in the long run.

Contents
A recipe for restructuringToo many cooks?

A recipe for restructuring

Thailand’s food delivery sector is heating up for potential consolidation as major players vie for dominance.

The recent decision by SCB X to continue operations of its loss-making platform Robinhood, citing interest from potential buyers, has stirred the pot of speculation about the industry’s future.

Too many cooks?

Industry experts, including Line Man Wongnai CEO Yod Chinsupakul, predict that only two or three platforms are likely to survive due to the strong network effect.

The sector, which experienced explosive growth during the pandemic, now faces fierce competition among four major players: Grab, Foodpanda, Line Man Wongnai, and Robinhood.

While Grab (Thailand) remains the only profitable platform, others are making strides. Line Man Wongnai significantly reduced its losses in 2023, and Foodpanda narrowed its deficit.

Despite the challenges, the industry continues to grow, becoming an integral part of Thailand’s restaurant landscape. As one restaurateur notes, food delivery services offer an attractive alternative to physical expansion for many establishments.

To read the original article: https://www.techinasia.com/thailands-food-delivery-sector-nears-consolidation

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