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Hello reader,
I’m a big Deliveroo fan. It’s my go-to delivery app, which is pretty unusual in Singapore where Grab dominates the conversation. When it comes to food delivery, I just enjoy the user experience and interface on Deliveroo a lot more.
The platform’s trying to hold its ground in Singapore’s food delivery war. But as consumer habits change and people start eating out more and ordering in less, Deliveroo needs to rethink how it operates in the city-state.
The closure of its cloud kitchens in Singapore is an indication of this – and it highlights how the pandemic era of food delivery glory is probably on its way out.
Today we look at:
- The closure of Deliveroo’s cloud kitchens in Singapore
- A Japanese startup focused on mobile food ordering
- Other newsy highlights such as OpenAI’s for-profit plans and Shein’s layoffs in Singapore
Premium summary
Cloudy with no chance of deliveries
Image credit: Timmy Loen
Deliveroo has announced the closure of its remaining cloud kitchens in Singapore – at Alice@Mediapolis and Tanjong Katong – due to rising operating costs and declining demand from restaurants.
- Slowing down: Deliveroo’s cloud kitchens in Singapore have been facing challenges for a while. In June 2021, the firm closed its site at CT Hub 2 at Lavender Street to focus on its other kitchens.
- Things have changed: The company’s decision to shut down its cloud kitchens comes as food delivery sales in Southeast Asia stagnate. While the industry saw a surge during the pandemic, growth has slowed significantly, leading to a focus on cost cutting and profitability.
- The good news: Despite the challenges in Singapore, Deliveroo is seeing some positive results globally. The company achieved its first-ever profit in the first half of 2024, driven by increased order volume in its core markets. However, operating costs in markets outside of the UK and Ireland remain high.
Read more: Deliveroo gets out of cloud kitchen business in Singapore
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