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Foodpanda to Cease Operations in Thailand, Parent Company Announces

This Week

Foodpanda will cease its operations in the country on 23 May, its German parent company Delivery Hero announced on 23 April. 

The decision is a major shake-up of Thailand’s competitive food delivery sector, marking the end of a nearly decade-long presence in the country. 

Delivery Hero confirmed in an official statement that the decision to exit Thailand is part of its broader effort to “optimize its geostrategy.” 

Despite the service shut down in Thailand, Delivery Hero assured stakeholders that its Thailand-based regional team, responsible for marketing and HR services across the Asia-Pacific region, will remain operational. 

“Delivery Hero thanks its employees, customers, partners and riders in Thailand and is committed to supporting them during the transition period,” the statement concluded.

A Competitive Market and Mounting Losses

Foodpanda’s retreat highlights the brutal competition within Thailand’s food delivery industry. 

With just under 15 percent market share, the platform has trailed behind frontrunners Lineman Wongnai with 44 percent and GrabFood with a 39.4 percent market share in a market valued at approximately THB 86 billion (USD 2.6 billion).

Despite aggressive marketing and promotions, Foodpanda struggled to achieve profitability, posting cumulative losses of nearly THB 3.8 billion (approximately USD 113.5 million) in 2022 and 2023. In contrast, GrabFood is the only major player reportedly inching into profit territory.

Failed Sale Talks and Strategic Shifts

The closure comes after Delivery Hero’s unsuccessful attempt to sell parts of its Southeast Asian business. The proposed deal would have involved a takeover of the Foodpanda brand across Laos, Thailand, Singapore, Cambodia, Malaysia, Myanmar, and the Philippines. 

Though the company did not name a buyer, insiders pointed to Singapore’s Grab and China’s Meituan as possible suitors. Negotiations, which began in September 2023, were terminated in February 2025 after failing to reach agreeable terms.

Delivery Hero emphasized its ongoing belief in Asia-Pacific’s long-term potential and has not ruled out future mergers and acquisitions if opportunities arise that offer “high certainty of closing” and value creation for shareholders.

Regional Reactions

Foodpanda’s exit from Thailand comes as no surprise to many in the region, as the increasing number of food delivery companies in the country has made it difficult for the company to remain competitive.

An employee from Foodpanda Laos, who wished to remain anonymous for safety reasons, commented on the situation, saying that competition in the food delivery industry is much higher in Thailand.

“The majority of Thai people frequently use services from other companies, such as Line Man and Grab. These two are actually the most commonly used platforms in Thailand. In Laos, however, we mostly use Foodpanda, which is directly managed by the parent company,” the employee explained.

Meanwhile, a Facebook post about the possible shutdown of Foodpanda in Laos has gained significant attention from social media users, many of whom shared their frustrations about the company’s services in the country.

“They deserved to be shut down. I ordered something, and they gave me something else,” one commenter said.

“I waited too long for the food—my appetite was gone by the time it arrived,” another critic added.

Echoing the Lao Foodpanda staff was Priyaphon Fahwan, a 21-year-old university student in Bangkok, who shared her thoughts about the notice but requested to remain anonymous.

“I use Foodpanda sometimes, but not as often as other delivery services like Line Man and Grab,” she said, adding that there are noticeably fewer Foodpanda riders compared to the others.

“Also, the promotions offered by Foodpanda aren’t as attractive as those provided by Line Man and Grab,” she noted.

Foodpanda’s exit from Thailand reflects shifting market dynamics and strategic changes, with its future in neighboring countries still unclear.

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