Foodpanda confirms layoffs, explores partial sale of business

SINGAPORE: Singapore’s Foodpanda shared a letter with its employees last Thursday, Sept 21, 2023. The APAC CEO of Foodpanda shared: “Our company priority right now is to become leaner, more efficient and even more agile. To do this, we need to streamline our operations so we can take on a more structured approach for the coming days.”

According to CNBC, Foodpanda confirmed layoffs last Friday, Sept 22, 2023. However, the number of employees affected was not included in the confirmation. Foodpanda is cutting jobs as its parent company, Delivery Hero, is talking to potential buyers about selling a part of its Southeast Asian food delivery business.

According to a report from German Media, the potential buyer is Foodpanda’s competitor, Grab.

In addition, Sachin Mittal, who serves as the head of telecom, media, and technology research at DBS Bank note said, “Grab’s competitors whether Gojek or Foodpanda are losing market share. Grab is gaining market share in deliveries from Foodpanda who might even exit few markets in due course. Foodpanda is dis-advantaged due to its stand-alone delivery model.”

In 2022, Southeast Asia’s food delivery market was led by Grab, which held a commanding 54% share of the region’s gross merchandise value. In contrast, Foodpanda secured 19%, while Gojek maintained a 12% share, as reported by tech research firm Momentum Works.

Redditors had a notable response, with many expressing disagreement with Delivery Hero’s decision to sell.

One user shared, “Hopefully, someone else that is NOT Grab buys it,” which was replied by user anonybaus with, “it’s Grab.”

Upstairs_Somewhere76 couldn’t believe the news sharing, “They just opened a new office in 2022 and were hiring aggressively then. Visited their office and it was very modern and pink.”

Another shared how he dodged a bullet, “Was interviewed for a role there and offered a lot of money for my level. Luckily turned it down hehe.”

Redditor Orangecuppa reminisced about the COVID times with the surge in delivery services, saying, “Well, it was good while it lasted. I really enjoyed the pre covid times of food panda. I thought this was the future…Everyone became afraid to go out and delivery services shot up in popularity. Covid is over and we’re back to pre covid but the prices stayed high. The last order I made was June 2021.”

Redditor Imperiax731st added: “It’s burning pink now. Soon it’ll all be just green. No need for alternate services to look for more delivery orders in future. It’ll either you get a call or not at all.”

With Foodpanda’s future hanging in the balance and Grab in the spotlight, uncertainty looms over Southeast Asia’s food delivery scene. Redditors and the public closely monitor the situation, hoping for the best but bracing for potential changes ahead.