Grab + Foodpanda = food delivery market dominance

Grab could be poised to dominate Southeast Asia’s food delivery sector with a big acquisition.

The Singapore-headquartered firm has been floated as a potential buyer of Foodpanda’s operations in Southeast Asia. Delivery Hero, Foodpanda’s parent company, confirmed that it is looking to sell the business in “selected markets” in the region.

As the chart above shows, such an acquisition could make Grab the leading player in three key Southeast Asian markets: Malaysia, Singapore, and the Philippines.

The combined entity could have a market share of over 90% by gross merchandise value (GMV) in all three countries.

While Foodpanda has a smaller presence in Thailand compared to these markets, its GMV share could top 60% if the deal with Grab pushes through.

Of course, such a deal could put Grab under the scrutiny of competition regulators. For the full story on the potential acquisition and what it would mean for Grab, click here.

Credits

Graphic: Simon Huang

Editing: Eileen C. Ang