On-demand platforms may exit markets, undertake strategic M&A in 2023
Rising cost pressures would force companies to be selective with opportunities.
Add BT as a preferred source
Sharanya Pillai
THE pressure to turn a profit could drive on-demand platforms to exit markets or sell off certain assets in 2023. But this would also present those with sufficient cash with opportunities to make acquisitions and ramp up market share.
Crystal Yu, insights lead at venture builder Momentum Works, expects 2023 to bring consolidation in the on-demand sector, which spans ride-hailing and food delivery.
“On-demand (services) is a thin margin, operations-heavy business; it depends on volume, density and operational efficiency to be viable. Having a fragmented market share prevents players from achieving these three factors,” she said.
TRENDING NOW
How BYD disrupted Singapore’s car market – and why the strategy is turning on itself
Two-thirds of Sentosa Cove resales in the red, with average loss topping S$1 million since 2023
AI infrastructure can lead South-east Asia’s next growth story: UOB
MAS eases family office tax rules, widens AML checks as Singapore vies for global wealth
