BANGKOK — Foodpanda has announced it will terminate all services in Thailand from May 23, 2025, after operating for more than 13 years, citing market conditions that no longer align with its long-term strategy.
The popular delivery platform, which gained significant traction during the COVID-19 pandemic, made the announcement on its official Facebook page. The foodpanda application will cease operations in just one month.
“Throughout our journey, we have been proud to drive our business and deliver happiness through every order to all our customers in Thailand,” the company stated.
“We feel honored to have served our beloved customers and to have received continuous support from restaurant partners and riders who have driven our success. However, the current market conditions no longer align with foodpanda’s long-term strategy. We deeply regret that our journey must come to an end, and we thank all customers who have trusted foodpanda throughout the years.”
Face Fierce Competition
Foodpanda, a German startup under Delivery Hero, began operations in Thailand in 2012—13 years ago—as Foodpanda (Thailand) Co., Ltd. The company later changed its name to Delivery Hero (Thailand) on July 30, 2019, with a current registered capital of 204 million baht ($6.1 million).
The company initially offered food ordering services through its website and telephone hotline before evolving into a comprehensive delivery platform. It eventually expanded to offer additional services including Pick-up, Dine-in, and Mart options.
Despite being the first and only delivery service operating across all 77 provinces in Thailand, foodpanda has struggled against fierce competition from major rivals Grab and LINEMAN.
#banfoodpanda Controversy
Moreover, Foodpanda once faced a reputation crisis stemming from political conflict in 2021, when a heated social media campaign using the hashtag #banfoodpanda erupted.
The controversy began when a Foodpanda page admin posted a message agreeing with a customer who opposed anti-government protests at the time, announcing they would fire Foodpanda riders who were driving in the protest procession, labeling them as “dangerous individuals.” By the time Foodpanda issued an apology, the company had already lost approximately 2 million app users.
After Years of Losses
Data from the Department of Business Development reveals that foodpanda has operated at a cumulative loss of $399 million over the past 5 years, from 2019 to 2023.
Financial Performance (2019-2023)
2019:
Total Revenue: $24.4 million
Total Expenses: $61.0 million
Net Loss: $37.8 million
2020:
Total Revenue: $130 million
Total Expenses: $233 million
Net Loss: $107 million
2021:
Total Revenue: $203 million
Total Expenses: $334 million
Net Loss: $141 million
2022:
Total Revenue: $108.5 million
Total Expenses: $190 million
Net Loss: $97.4 million
2023:
Total Revenue: $115 million
Total Expenses: $110 million
Net Loss: $15.6 million
Asian Business Stagnates
Delivery Hero’s business in Asia, its largest market, has stagnated since 2023 following the easing of COVID-19 restrictions. In 2024, the German food delivery giant announced it had ended negotiations with an undisclosed third party regarding the potential sale of its Foodpanda business in selected Southeast Asian markets, where it has been attempting to downsize.
The accumulated deficit from years of intense market competition ultimately led to its decision to exit the Thai market after more than a decade of operations. Shares in Delivery Hero rose 3.7% after the announcement that Foodpanda would cease operations in Thailand.
Strategic Realignment
Reports from foodpanda Thailand indicate that Delivery Hero SE’s decision to cease operations in Thailand stems from a strategic geographical realignment. The company is redirecting resources to other Asia-Pacific (APAC) markets with higher growth potential and better returns.
The regional team based in Thailand, which handles various support functions such as marketing and human resources for the Asia-Pacific region, will continue to operate normally despite the closure of local delivery services.
Another Challenging Year
This development follows another significant shift in Thailand’s food delivery landscape, where Robinhood Delivery, previously owned by SCB X Public Company Limited, was sold to Yip In Tsoi Company for 2,000 million baht ($61.6 million) in October 2024.
According to Kasikorn Research Center, 2025 continues to be a challenging year for the food delivery business after experiencing slight contractions in 2023 and continuing through 2024, when the market was valued at $2.57 billion. In contrast, Thailand’s overall restaurant and beverage business is expected to grow by 4.6% in 2025, reaching a market value of $19.6 billion.
The exit of foodpanda, which once operated across all 77 Thai provinces, further highlights the ongoing consolidation in Thailand’s competitive food delivery market, now dominated by remaining players Grab and LINEMAN.
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