Next frontier of growth in Southeast Asia
South East Asia The on-demand food delivery market is highly concentrated. GrabFood (by Grab), Foodpanda (by Delivery Hero) and GoFood (by Gojek) contributed 84.8% of the total market share in 2021, followed by smaller operators such as Deliveroo in Singapore, Lineman in Thailand and ShopeeFood in Indonesia, Malaysia and Thailand. By market share in 2021, GrabFood is the leading on-demand food delivery service in South East Asia with 47.8% of the market, followed by Foodpanda at 23.2%, GoFood at 13.8% and others at 15.2%.
“The rise of shared mobility solutions in South East Asia accelerated the expansion of on-demand food delivery services. Backed by large customer bases and user dependency, operator super apps enable value chain integration,” said Ming Lih ChanIndustry Analyst, Mobility at Frost & Sullivan. “In addition, leading on-demand service operators are expected to expand their product portfolios over the next three years, including on-demand food and beverage deliveries, fresh food and kitchen supplies, groceries, pharmaceuticals, etc.”
Chan added, “The development of on-demand food delivery services will lead to the optimization of merchants, including supply chain management and time management, which vary with food delivery types such as such as instant, scheduled and deferred. Moreover, with the rapid evolution of technology and the popularization of mobile internet, the adoption of digital payment solutions as opposed to cash on delivery will also increase.”
To exploit growth prospects, on-demand food delivery operators must:
- Evaluate the potential integration of different industriesin particular those related to mobility, including strategic partnerships, mergers and acquisitions.
- Improve the instant food delivery market and strengthen their competitiveness by expanding their product portfolios and applying new technologies.
- Explore Merchant Partnershipsespecially catering restaurants and catering services, to enrich product choices for users.
Southeast Asia On-Demand Food Delivery Market, 2021-2030 is the latest addition to Frost & Sullivan’s Mobility research and analysis available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous stream of growth opportunities to succeed in the unpredictable future.
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Southeast Asia On-Demand Food Delivery Market, 2021-2030
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SOURCE Frost & Sullivan