Grab captured 55% of SEA’s food delivery market in 2023: report

Grab led the food delivery market in Southeast Asia in 2023, accounting for nearly 55% of the food delivery gross merchandise value (GMV) in the region, a report by Momentum Works states.

While Grab grew 6.8% year on year in terms of GMV, its closest competitors Foodpanda and Gojek declined by 12.9% and 10% year on year, respectively.

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

Overall, Southeast Asia’s food delivery expenditure topped US$17.1 billion, growing by 5% year on year.

This growth was led by Vietnam, which posted a 28% 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.

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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 Southeast 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.