01/05/2025
Foodpanda exits Thailand, a few thoughts on what went wrong and the challenges they faced.
After 13 years operating in Thailand, Foodpanda has announced its exit by May 23, 2025. Despite being the first food delivery app available across all 77 provinces, the company consistently struggled financially, accumulating losses of around 13.36 billion baht (approximately $399 million) between 2019 and 2023. Failing to ever make an annual profit.
Market dominance remained elusive, with Foodpanda capturing just under 15% of market share, trailing behind strong competitors like Lineman Wongnai (44%) and GrabFood (39.4%). Attempts to find a buyer, including discussions with major players such as Grab and Meituan, ultimately fell through, perhaps sealing their decision to withdraw.
Beyond financial struggles, Foodpanda faced significant political and social backlash. A major incident in July 2021, where the company controversially labeled a protesting rider a "terrorist," sparked a widespread boycott under the hashtag ( ), resulting in around 2 million app deletions and numerous restaurant partnerships dissolving overnight.
Additionally, Foodpanda faced labour disputes, notably in Chiang Mai in August 2021, where riders protested sudden pay cuts, further deteriorating public relations and workforce morale.
Their aggressive approach, charging high fees to restaurants while heavily discounting to attract consumers, also strained key relationships and drew criticism.
Anecdotally, the user base seemed to be pretty much exclusively expats, a tiny fraction of the market in Thailand, with most Thais preferring Lineman or Grab. This was mainly down to Foodpanda having English menus from day one, something Grab didn’t achieve until many years later and still hasn’t fully adopted. However, once their rivals started offering English-language options, a lot of Foodpanda’s loyal customer base moved over (me included).
Foodpanda’s exit highlights crucial lessons about navigating a competitive market, appealing to the local demographic, being culturally and politically in tune, and the importance of balancing aggressive growth with long-term sustainability.
What are your thoughts on Foodpanda's departure from Thailand? I'd be interested to hear other perspectives.
