Delivery Hero, the parent company of Foodpanda, announced on Wednesday its decision to cease food and grocery delivery services in Thailand.
Foodpanda, a major food delivery platform owned by Berlin-based Delivery Hero, will cease operations in Thailand on May 23, 2025, after 13 years. The decision, announced on April 23, 2025, stems from intense competition, rising costs, and market conditions misaligned with the company’s long-term strategy.
Key takeaways
- Delivery Hero will shut down Foodpanda’s delivery services in Thailand as part of a broader geostrategic shift.
- Foodpanda struggled in Thailand’s competitive market, holding just under 15% share and accumulating heavy losses.
- Despite the shutdown, Delivery Hero’s regional support team in Thailand will continue operating to serve the Asia-Pacific region.
The decision is part of the Berlin-based company’s strategy to “optimize its geostrategy,” following similar exits from markets such as Denmark, Ghana, Slovakia, and Slovenia, the company said in an official statement.
Delivery Hero added that it will continue focusing on other Asia-Pacific markets where it sees stronger potential for returns.
The company also confirmed that its Thailand-based regional team, responsible for services such as marketing and HR operations for the Asia-Pacific region, will continue to operate as usual.
Foodpanda has been struggling to compete in Thailand’s fiercely competitive food delivery market, where it holds a market share of just under 15%, far behind Lineman Wongnai (44%) and GrabFood (39.4%).
In a market estimated to be worth 86 billion baht, only GrabFood has begun to turn a modest profit. According to business analytics firm Creden Data, Foodpanda has accumulated net losses of 13.8 billion baht between 2014 and 2023.
Delivery Hero had attempted to sell parts of its Foodpanda business in Southeast Asia last year but failed to reach an agreement with potential buyers.
While the company did not disclose names, earlier reports pointed to Singapore-based Grab as a likely suitor, with China’s Meituan also reportedly exploring a potential acquisition to gain a foothold in the region.
Foodpanda’s exit from Thailand marks a significant retreat in Delivery Hero’s efforts to compete in Southeast Asia’s cutthroat delivery landscape.
With mounting losses and stiff competition from regional giants, the move reflects a broader realignment of the company’s global strategy toward more promising markets.
As Delivery Hero refocuses on areas with higher return potential, its continued presence in Thailand through regional support operations signals an intent to remain connected to the Asia-Pacific ecosystem, even as direct consumer services wind down.
