Southeast Asia’s online food delivery sector has seen a robust rebound, with total spending reaching US$19.3 billion in 2024, a 13 per cent year-on-year increase.
This marks a significant acceleration from the 5 per cent growth observed in 2023.
According to Momentum Works’s fifth annual “Food Delivery Platforms in Southeast Asia” report, Vietnam and Indonesia led this growth, with GMV increases of 26 per cent and 18 per cent, respectively. Many other markets in the region also experienced double-digit growth.
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This surge in food delivery spend comes despite an overall slowdown in the F&B market growth to 4.6 per cent. Food delivery penetration has deepened due to new customer segments and evolving platform strategies.
Key highlights from the report:
Market leaders: Grab maintained its leading position in the market, increasing its lead over Foodpanda. ShopeeFood has surpassed Gojek to become the third-largest player in the region.
Growth drivers: Vietnam’s food delivery market experienced the highest growth at 26 per cent, with ShopeeFood and Grab forming a duopoly. Indonesia followed with 18 per cent growth, driven by expansion efforts from Grab, Gojek, and ShopeeFood.
Strategic shifts: Platforms focus on attracting mass-market customers through budget-friendly initiatives like lower delivery fees and value meals. They also target tourists, particularly from China, to further drive growth.
Emerging trends: TikTok has begun piloting local services in Indonesia and Thailand, allowing users to purchase vouchers for F&B and other services. This entry into local services could disrupt the food delivery market, especially if TikTok partners with delivery platforms for fulfilment.
Profitability focus: Platforms have been focusing on improving unit economics by optimising rider operations, reducing delivery costs, and segmenting customers into mass, standard, and premium tiers.
Potential consolidation: The food delivery market is becoming increasingly concentrated, with two leading players dominating over 80 per cent of the market in most countries. A potential Grab-Gojek merger could further reshape the competitive landscape in 2025.
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“After years of prioritising profitability, Southeast Asia’s top food delivery platforms have regained momentum to fuel their next phase of growth,” said Jianggan Li, Chief Executive Officer and Founder of Momentum Works. “With sharper customer segmentation and enhanced operational efficiency, they are now positioned to explore bolder, more strategic moves that drive sustainable expansion”.
Momentum Works provides insights into the digital ecosystem in emerging markets, focusing on research, consultancy, community engagement, and venture building. It is a source of expertise in navigating the evolving landscape of emerging markets, especially in e-commerce, new retail and F&B, and the application of emerging technologies.
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