Less is more for Thai food delivery

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Hello reader,

I love food delivery. I try not to order too often because it can be pretty painful to the wallet, but there’s something amazing about lying on your sofa, tapping a few buttons in an app, and having food magically appearing at your doorstep shortly after. I don’t even have to put on real pants for it.

However, the food delivery space is pretty competitive, with many players vying for market share and navigating the challenges of profitability and growth and all that other fun stuff.

In Thailand, things are heating up – and as the sector continues to grow, we may be seeing more mergers and acquisitions between the different players on the road ahead.

Today we look at:

• The consolidation potential in Thailand’s food delivery sector
• An Indian startup working on voice AI
• Other newsy highlights such as Lazada’s first profitable month and Animoca Brands’ declining valuation

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Less is more

Image credit: Timmy Loen

Thai food delivery platform Robinhood was due to shut down after years of losses, but these plans were reversed due to interest from potential buyers. This indicates that the food delivery sector in Thailand may be seeing greater consolidation on the road ahead as players vie for dominance.

• Network effects: Yod Chinsupakul, CEO of Line Man Wongnai, one of Thailand’s biggest food delivery platforms, believes that the market will consolidate, leading to profitability for the remaining players. He believes that only two or three firms are likely to survive due to the strong network effect.
• The big G: At the moment, only Grab’s Thailand business is profitable among all the food delivery services in the country, although that may be due to its taxi vertical.
• The opportunity is there: Despite fierce competition, food delivery as a sector is still set to grow. Yod says that it has become an integral part of the Thai lifestyle, with most new restaurants offering delivery options.

Read more: Thailand’s food delivery sector nears consolidation

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