On-demand platforms may exit markets, undertake strategic M&A in 2023

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.