Cambodia Investment Review
After more than a decade in Thailand’s highly competitive food delivery market, Foodpanda has announced it will cease all operations in the country effective May 23, 2025. The decision, made by its German parent company Delivery Hero, underscores a broader shift in regional strategy—one that prioritizes profitability over presence.
Profit Over Presence
Foodpanda’s exit comes amid mounting losses and persistent market underperformance. According to company disclosures, Delivery Hero racked up cumulative losses of over $399 million (13.36 billion baht) between 2019 and 2023 in Thailand alone. Despite efforts to sell the Thai business—including negotiations with Grab and Meituan—no deal materialized, leaving the company with little choice but to wind down operations.
The food delivery platform struggled to capture market share, holding under 15% in a landscape dominated by Lineman Wongnai and Grab. While it once played a pivotal role in introducing online food delivery in Thailand, Foodpanda found itself outpaced by competitors more in tune with local tastes and operational efficiency.
A Series of Public Setbacks
The exit also follows a public relations crisis that damaged Foodpanda’s brand in Thailand. In July 2021, the company drew widespread backlash after calling a protesting delivery rider a “terrorist” on social media. The comment sparked the viral #BanFoodpanda movement, prompting around two million users to delete the app. A month later, riders in Chiang Mai protested against wage cuts, further undermining public trust.
These reputational hits contributed to a decline in customer and rider loyalty, compounding the company’s financial woes.
Delivery Hero’s New Game Plan
Despite the market withdrawal, Delivery Hero is not exiting Thailand entirely. The company will retain its Asia-Pacific regional office in the country, reflecting its continued strategic interest in the broader Southeast Asian market.
The move is part of a larger pivot toward disciplined market selection. Delivery Hero is now focusing only on countries that offer either higher profit margins or long-term growth potential. Thailand’s combination of heavy competition, regulatory complexity, and consumer backlash ultimately failed to meet these criteria.
Lessons for Startups and Investors in Southeast Asia
Foodpanda’s departure offers key takeaways for entrepreneurs and investors operating in emerging Southeast Asian markets. Chief among them: market share without profitability is not sustainable.
Localization, cultural sensitivity, and financial discipline remain essential ingredients for long-term success. The episode highlights the need for companies to balance aggressive expansion with operational sustainability, especially in dynamic but margin-sensitive sectors like food delivery.
In what many see as a cautionary tale, Foodpanda’s retreat from Thailand marks a turning point for regional digital platforms, setting the stage for a new era where discipline, not just disruption, determines survival.
