In a strategic move that could reshape the competitive landscape of the Southeast Asian food delivery market, Delivery Hero, the Berlin-based global food delivery giant, has announced that it is considering a partial sale of its Asia business. The company confirmed these talks on Wednesday, though the value of the potential deal remains under negotiation.
Delivery Hero’s decision to potentially divest itself of its Asian operations is poised to have far-reaching implications. The company aims to shed its activities under the foodpanda brand in several countries, including Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand. The move comes as part of Delivery Hero’s ongoing efforts to streamline its global portfolio and focus on its core markets.
The news of this potential sale has sent shockwaves through the industry, with several key players expressing interest. Notably, Grab, the Southeast Asian super app known for its ride-hailing and delivery services, has emerged as a prominent suitor for Delivery Hero’s foodpanda operations in the region.
Delivery Hero, which operates in over 40 countries globally, has been reviewing its global strategy in recent years. The company’s foray into the fiercely competitive Southeast Asian market, through its foodpanda brand, has presented both opportunities and challenges. While the region offers immense growth potential, it has also been marked by intense competition, regulatory hurdles, and operational complexities.
To address these challenges and focus on its core markets, Delivery Hero is now contemplating the partial sale of its foodpanda business in Asia. The move aligns with the company’s broader strategy to optimize its portfolio and allocate resources more efficiently.
Grab, a Singapore-based tech unicorn that has rapidly expanded beyond ride-hailing to offer a wide range of services, including food delivery, financial services, and digital payments, appears keen on adding Delivery Hero’s foodpanda assets to its growing ecosystem.
While the talks between Delivery Hero and Grab are still in their early stages, the potential sale of foodpanda’s operations in Southeast Asia has already garnered significant attention. The coming week are likely to see intense negotiations between the two companies, as well as regulatory scrutiny, given the potential impact on competition in the region.
