Delivery Hero’s food delivery service, foodpanda, will cease operations in Thailand on May 23, 2025.

The company, based in Germany, announced the decision on April 23, 2025.

Delivery Hero will redirect resources to other markets in the Asia-Pacific region, expecting better returns there.

The regional team in Thailand will continue with its usual operations despite the closure.

This exit is part of a strategic shift as Delivery Hero reevaluates its priorities in the competitive food delivery industry.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Strategic market consolidation signals maturing food delivery industry

Delivery Hero’s Thailand exit continues a distinct pattern of geographic rationalization among food delivery giants seeking profitability after years of expansion.

The company had previously explored selling its Foodpanda operations in Singapore, Malaysia, and Thailand in 2023, but terminated those talks in February 2024 when agreement terms couldn’t be reached1.

This follows similar strategic exits from Denmark, Ghana, Slovakia, and Slovenia as the company focuses resources on higher-return markets2.

The retention of Thailand’s regional team despite ceasing operations suggests Delivery Hero is maintaining regional expertise while shedding underperforming markets3.

This rationalization trend mirrors Uber’s 2018 Southeast Asian exit, where it sold operations to Grab after determining it couldn’t profitably compete against local rivals who better understood regional nuances4.

2️⃣ Local players gaining edge in Thailand’s competitive delivery market

Thailand represents a particularly challenging market with firmly entrenched local competitors that have successfully adapted to local preferences and consumer behavior.

GrabFood leads with 56% market share while LINE MAN Wongnai—a merger combining Thailand’s popular LINE messaging app with local food delivery—follows closely at 53%, demonstrating how local partnerships create powerful market advantages5.

Recent Delivery Hero developments