A new era for Southeast Asia’s food delivery race

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Hi there,

If you often order through food delivery platforms, you may think twice about doing that now. Promotions and discounts are not as generous as before, and prices aren’t as cheap.

These days, more conditions must be met in order to get discounts, such as hitting a minimum transaction amount or using a specific payment method.

These changes are happening because food delivery companies are tightening their belts as they pursue profitability. As such, incentives are being reduced or becoming more targeted.

In this week’s Big Story, I delve into the different approaches of companies such as Grab, GoTo, Foodpanda, and Shopee in the food delivery segment.

In Southeast Asia, Grab leads the way in six core markets. However, competition for second place will heat up as the platforms fight for survival in a sector considered to have relatively low margins and generally supports two large players per market.

Meanwhile, in this week’s Hot Take, I discuss an important period for ecommerce in Indonesia and Malaysia that’s less than a week away: Ramadan.

While those in other markets bet big on Singles Day, ecommerce players in both countries go all out for Ramadan, which is not only a holy month for Muslims but also a peak time for shoppers.

— Jofie

Note: ​​We’re making some changes to this newsletter. Instead of being published weekly, The Checkout will be published every other week. Watch out for the next edition on March 30.

THE BIG STORY

As Grab leads the pack in SEA’s food delivery race, challengers vie for second spot

Image credit: TImmy Loen

Food delivery players have reduced their incentives and are focusing more on generating revenue and improving consumer loyalty.

THE HOT TAKE

NEWS YOU SHOULD KNOW

FYI