Foodpanda might soon exit the Philippines and other Southeast Asian markets amid talks of a partial sale by its parent company Delivery Hero.
According to a report by CNBC, the company confirmed that it is in discussions with potential buyers to sell part of its Southeast Asian food delivery business, which includes operations in Singapore, Cambodia, Malaysia, Myanmar, the Philippines, Thailand, and Laos.
The report also said that Foodpanda is undergoing another round of layoffs to become “more efficient and more agile”. This is the third time that the company has cut jobs since September 2022, when it laid off employees across its global operations.
Foodpanda’s move to sell part of its Southeast Asian business comes as the food delivery industry faces increased competition and challenges in the post-pandemic era. According to a report by tech research firm Momentum Works, Grab is the dominant player in the Philippines with 60% of the gross merchandise value in 2022, followed by Foodpanda with 40%.
Jonathan Woo, a senior research analyst at Phillip Securities Research, told CNBC that Grab is one of the likely buyers of Foodpanda’s Southeast Asian business. He said that the acquisition would be “most appealing to Grab” as it would help the company consolidate its market share and reduce its costs.
However, Grab did not comment on the matter and it is unclear whether the deal is pushing through. If Foodpanda does exit the Philippines, it could have a significant impact on the food delivery landscape in the country, including an increase in prices across deliveries.
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