Even though the COVID-19 situation has eased, the food delivery business in Thailand is still as hot as the flavors of popular foods. Although the market is expected to slow down a bit, the three major platforms like Grab, LINE MAN, and foodpanda (Robinhood is scheduled to close on July 31, 2024) are still competing fiercely for market share. Amid the challenges of changing consumer behavior, higher costs and intense competition, this article will take you to explore the overall delivery business in 2024 and the important factors that will determine the future of this business in Thailand.
Food Delivery Thailand 2024: Intense competition and challenges in doing business.
Thailand's food delivery market remains a fierce battleground for four major platforms: Grab, LINE MAN, foodpanda and Robinhood, with each platform offering different strategies to compete for market share. Amid Kasikorn Research Center's forecast that the food delivery market value in 2024 remains stagnant, the market value is estimated at about 86 billion baht, down 1.0% from 2023, although the average delivery price will rise by 2.8% to 185 baht, but The number of food orders has decreased in the face of higher prices
Grab vs LINE MAN, the battle between the market leaders
The situation indicates that Grab still maintains its leading market position with a 30% share and its revenue in 2023 will reach 15,622 million baht, although the growth rate will not be very high compared to the previous year, while LINE MAN with the same market share of 30% %, and there was significant growth in revenue. This will rise from 7,802 million baht in 2022 to 11,634 million baht in 2023.
Foodpanda and the challenge of making a profit
While Grab and LINE MAN are now able to turn a profit, Foodpanda is still experiencing losses. However, Foodpanda is likely to reduce its losses from 3,255 million baht in 2022 to 522 million baht in 2023.
Terminating Robinhood, a strategic decision for SCBX
Amid fierce competition, SCBX announced that it would terminate Robinhood services on July 31, 2024, arguing that Robinhood had fulfilled its mission to help the community during the coronavirus (COVID-19) and that terminating servicesIt is consistent with the framework of effective capital management. To create sustainable value for shareholders and this will not affect SCBX Group's strategic plan to become a leader in the field of financial technology.
Performance results over the past three years for delivery businesses in Thailand that remain open for service at this time
Catch
- 2021: Revenue 11,375 million baht, loss 325 million baht.
- 2022: Revenue 15,197 million baht, profit 576 million baht
- 2023: Revenue 15,622 million baht, profit 1,308 million baht
Line man
- 2021: Revenue 4,140 million baht, loss 2,386 million baht.
- 2022: Revenue 7,802 million baht, loss 2,730 million baht.
- 2023: Revenue 11,634 million baht, profit 253 million baht
com. foodpanda
- 2021: Revenue 6.786 million baht Loss 4.721 million baht
- 2022: Revenue 3.628 million baht Loss 3.255 million baht
- 2023: Revenue 3,843 million baht, loss 522 million baht
Factors influencing the Food Delivery Market in 2024
- Changing consumer behavior: Post-coronavirus (COVID-19) situation. Consumers are likely to return to restaurants to dine in. As a result, demand for food delivery services has decreased.
- Fierce competition: Different platforms need to compete intensely with promotional strategies and discounts. To attract and retain customers
- High costs: High raw material and labor costs lead to higher food prices. This may be a factor that prompts consumers to reduce their use of food delivery services.
The future of food delivery business in Thailand
Although the food delivery market in 2024 may slow down but it still has the potential to grow. Especially among consumers who value convenience and have high purchasing power as well as different platforms it is also possible to extend the service to secondary cities and remote areas. To expand the customer base as well
Food delivery business in Thailand is still a market with growth potential. But it faces a variety of challenges. Robinhood's closure is a reminder of how difficult it is to make a profit in this market. Different platforms There is a need to constantly adapt and develop strategies. To create sustainability and long-term growth
Although the overall food delivery business in 2024 will face challenges in every aspect. But it cannot be denied that this service has become part of the lifestyle of Thai people. Whether it's a quick meal on a workday or a special meal on holiday, our food delivery service is ready to meet your every need.
Competition is fierce in this market and this may allow consumers to take advantage of various promotions and discounts. But at the same time, it is an important test for service providers who must constantly adapt and develop innovations. To make a difference and ensure long-term sustainability
We must continue to pursue this. Which platform will truly win the hearts of consumers and become a leader in the highly competitive food delivery market? But one thing is certain. This work will remain an important part of driving Thailand's digital economy. And creating opportunities for many small entrepreneurs in the future
Origin Kasikorn Research Centre Hold on, Line Man, Food Panda