It’s confirmed! Foodpanda quits Vietnam

Photo credit: Alex Kehr.

It’s not just a rumor. Rocket Internet’s online food delivery service Foodpanda has shut down in Vietnam.

Tim Schefenacker, Foodpanda’s global head for communications, told Tech in Asia today: “Yes, I can confirm that we have decided to close down our business in Vietnam.”

“We saw a smaller and rather long-term opportunity in Vietnam compared to our other markets and therefore want to focus stronger on [the latter], given Foodpanda’s focus on profitability,” he explained, offering no specifics.

A “notice of termination” from Foodpanda informing its restaurant partners of its decision was making the rounds on social media. Local news site Genk ran a story, along with the document. Tim verified that the document was legitimate.

Image taken from Genk

Big trouble in little Vietnam

In the notice dated December 2, Foodpanda’s general director for Vietnam Trương Duy Linh said the company was suffering from a “financial situation” and “facing many difficulties.”

He further said that five days following the announcement, the company would cease all business activities in the country, primarily its website Foodpanda.vn.

Foodpanda launched in Vietnam under the HungryPanda banner in 2012, a time when competition in this sector was already heating up around Asia. In Vietnam, the company had to work hard to deal with strong homegrown brands Vietnammm and Eat.vn.

Eat.vn is backed by one of Vietnam’s most prominent online media companies, VC Corp. Takeaway, one of the world’s biggest online food delivery services, bought a stake in Vietnammm, bringing the rivalry to a whole new level.

All companies were said to have been amping up their marketing and advertising spend in the country. Genk reported that up to the end of 2014, Foodpanda was aggressively fighting for its share of the market and was even advertising on TV.

Around the globe, Foodpanda and sister site Hellofood are competing head-on with a variety of meal delivery sites and apps. Foodpanda has gobbled up competitors in Mexico, Russia, Brazil, Eastern Europe, India, and Southeast Asia, bringing its restaurant partners to more than 38,000 in 500 cities worldwide at the latest count.