Delivery Hero was previously in talks to sell the Foodpanda brand in some Asian countries but the negotiations failed.
PETALING JAYA: Food delivery company Foodpanda and its German parent company Delivery Hero will shutter their operations in Thailand on May 23.
Delivery Hero said this was part of the company optimising its “geostrategy”, and that it would focus on its operations in other parts of Asia-Pacific where it was seeing greater profits.
Its regional team based in Thailand would continue to operate, however, providing services for its operations in Asia-Pacific, the Bangkok Post reported.
“Delivery Hero thanks its employees, customers, partners and riders in Thailand and is committed to supporting them during the transition period,” the company was quoted as saying.
Foodpanda reportedly only holds a 15% share of the food delivery market in Thailand, which is dominated by Lineman Wongnai (44%) and GrabFood (39.4%).
Delivery Hero (Thailand) Ltd has reportedly been a loss-making company in its 13 years of operating there.
While Asia is Delivery Hero’s largest market, business in Asia had stagnated after the Covid-19 lockdowns were lifted. In September 2023, it said it was in talks to sell the Foodpanda brand in some Asian countries.
However, in February last year, the German company said these negotiations had failed as they could not reach an agreement on the terms of the deal.
