Foodpanda Bids Farewell to Thailand After 13 Years of Losses

 

Foodpanda, the Thai arm of German-owned delivery giant Delivery Hero, has announced it is ceasing operations in Thailand, effective 23rd May 2025.

 

The move comes after a prolonged and costly battle in the fiercely competitive Thai food delivery market.

 

In a statement released via social media on Wednesday, Foodpanda Thailand expressed pride in its service but cited current market conditions as no longer aligning with the company’s long-term strategy.

 

The company thanked its customers, restaurant partners, and riders for their support.

 

Delivery Hero SE, the global platform, confirmed the exit, stating it was part of a geographical strategy adjustment, a move previously seen in markets like Denmark and Slovakia. 

 

The company will now concentrate its resources on other Asia Pacific (APAC) markets deemed to offer greater growth potential and higher returns. The regional support team based in Thailand will, however, continue its operations.

 

Despite the platform's popularity, financial records paint a grim picture. Data from Creden Data reveals that Delivery Hero (Thailand) Ltd. has never recorded a profit in its 13 years of operation.

 

In 2023, the company reported a revenue of 3.84 billion baht but still incurred a loss of 522 million baht. Over the five years from 2019 to 2023, accumulated losses totalled a staggering 13.36 billion baht.
 

 

Analysis of the financial data shows a pattern of significant losses despite revenue growth in some years, particularly during the pandemic.

 

While cost-cutting measures in recent years had begun to reduce losses, it was evidently not enough to ensure long-term viability in the Thai market.

 

Notably, reports previously suggested that LINEMAN Wongnai, a local competitor, was considering acquiring Foodpanda's Thai operations.

 

However, this deal ultimately failed to materialise, paving the way for Delivery Hero’s decision to withdraw entirely.
 

 

 

 

Pawoot Pongvitayapanu, CEO of Creden.co, a veteran in Thai e-commerce, commented on the intense competition within the Thai food delivery sector, noting Foodpanda’s decision to close rather than sell.

 

He highlighted the company’s consistent losses and the substantial accumulated deficit across its six-company ecosystem in Thailand.

 

The exit of Foodpanda marks a significant shift in the Thai food delivery landscape, leaving competitors to vie for its market share.