German owner of Foodpanda, Delivery Hero, is reportedly negotiating with several parties to sell the subsidiary in the selected Southeast Asia market, such as Thailand, Laos, Myanmar, Cambodia, Philippines and Singapore.
The potential buyer might be only Grab and GoTo since the competition is very intense, said by analysts at Phillip Securities Research.
According to Momentum Works research and DBS Bank, Grab is the leader in Southeast Asia, holding 54% of gross market value in 2022, leaving the 12% to GoTo’s subsidiary, Gojek and 19% for Foodpanda.
GoTo is an Indonesian merger between the food deliveries, Gojek and e-commerce giant Tokopedia, while Foodpanda is using a stand-alone business model that might have proved disadvantageous, considering the above market share.
The delivery businesses have been struggling throughout recent years. Foodpanda announced its scale down in German and exit from Japan in 2021. Foodpanda already had two rounds of layoff in February and September 2022, while Grab and Deliveroo also joined the cut this year as well, despite economic headwind thus far.
Meanwhile, Foodpanda Singapore is still cutting more jobs on Friday, citing the need for more agile and critical business. Delivery Hero never had a profit year since its founding in 2011. The company is still losing almost $900 million in the first half of this year, compared to over $1.5 billion full year loss in 2022.
Delivery Hero SE (DHER) is currently trading around EUR 31. It has been trading on average between EUR 30 to 50, while its peak between EUR 110 and 130 in 2011.