Grab is still leading the charge for food delivery in Southeast Asia in terms of gross merchandise value (GMV), contributing nearly half of the region's total GMV of US$15.5 billion – another all-time high – after debuting on the NASDAQ in early December 2021, following a record $40 billion merger with a special purpose acquisition company (SPAC), which is the world's largest special purpose acquisition company (SPAC) transaction.
Grab generated US$7.6 billion in GMV last year, according to Momentum Works' Food Delivery Platforms in Southeast Asia report for 2021. Grab contributed $5.9 billion in GMVs to Southeast Asia's total of $11.9 billion in 2020, according to the report.
Grab was followed by Foodpanda ($3.4 billion) and Gojek/GoTo ($2 billion) in 2021, all of which maintained their positions from the previous year.
According to Momentum Works, Grab's meal delivery service has four advantages: lower user and partner acquisition costs, local leadership with product localization, good partnerships with local governments, and an IPO.
Grab, on the other hand, is having trouble controlling its hyperlocal expansion in each country. Grab must reconcile the product, technology, and data needs of multiple business divisions under the mega app.
In terms of market share, Grab is the top in Indonesia, Thailand, Singapore, Vietnam, and the Philippines, according to the survey. In Malaysia, it was pushed to second place by Foodpanda, which had 49 percent of the market share compared to Grab's 48 percent.
Line Man, a regional operator with a 22 percent market share in Thailand, is one regional player making strides in the space.
Line Man, Grab, Gojek, and Foodpanda, according to Momentum Works, have been progressively focusing on grocery and rapid commerce, leveraging their current delivery infrastructure and user base.
The survey also discovered that these key players' margins have been improving, paving the path for their diversification efforts. "Profitability may be achieved by increasing operating efficiencies, increasing order volume and supply density, and adding additional services to better monetize the platform and retain clients," the report stated.
Source : Momentum Works, Techin Asia, Technode.global
