Grab captures 55 per cent of S-E Asia’s food delivery market in 2023

GRAB led the food delivery market in South-east Asia in 2023, accounting for nearly 55 per cent of the food delivery gross merchandise value (GMV) in the region, according to a report by Momentum Works. While Grab grew 6.8 per cent year on year in terms of GMV, its closest competitors Foodpanda and Gojek declined by 12.9 per cent and 10 per cent year on year, respectively.

As Grab counts only 5 per cent of the region’s 600 million population as monthly transacting customers, there remains a large pool of potential users for food delivery apps in South-east Asia, noted the report.

Overall, South-east Asia’s food delivery expenditure topped US$17.1 billion, growing by 5 per cent year on year.

This growth was led by Vietnam, which posted a 28 per cent GMV increase. It was followed by Malaysia, Thailand, and Indonesia, while Singapore’s growth remained flat.

F&B spending also recovered to surpass pre-pandemic levels in the region, but many premium brands resorted to cost-cutting measures and shutdowns, which the report linked to macro uncertainties.

Amid the growing uncertainty, companies are diverging their strategies, with consolidation continuing to be the common factor. For example, Delivery Hero exited Vietnam while also trying to sell Foodpanda in South-east Asia, and Line Man Wongnai acquired a majority stake in Rabbit Line Pay.

Another notable trend is of Chinese F&B brands such as Luckin Coffee and Cotti Coffee entering the region, eyeing additional growth prospects.

“With robust F&B consumption, low food delivery penetration, and ongoing consolidation, there is a lot of room for growth for food delivery platforms in the region,” said Jianggan Li, CEO and founder of Momentum Works. TECH IN ASIA