AirAsia's flight to food delivery in Singapore may not be easy, says Momentum Works

THE chief executive of venture builder Momentum Works has panned AirAsia's plan to bag the lion's share of Singapore's food-delivery market, and said that the revenue generated from that is likely to be a drop in the ocean to the Malaysia-based loss-making budget air carrier.

Li Jianggan told The Business Times that it is tough for a new general platform to break into Singapore's competitive food-delivery space, where Grab and Foodpanda already command 76 per cent of the market; he also pointed out that Grab, in particular, has invested a lot to build up its profitability factors.

He noted that AirAsia delivered 150,000 orders for the first quarter in Malaysia - a fraction of the overall market in Malaysia, which is almost wholly occupied by Grab and Foodpanda.