Foodpanda owner Delivery Hero is in talks of a partial sale of its business in Southeast Asia, according to Bloomberg and Reuters. The Berlin-based company had recently confirmed this through a statement responding to a report by German business magazine Wirtschaftswoche concerning the matter that was published on 20 September 2023.
In the announcement, Delivery Hero says it is currently in early stages of negotiations to sell its Foodpanda food delivery brand in Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar and Laos, though it did not mention the name of the potential buyer (or buyers). However, Wirtschaftswoche believes that the company’s rival Grab is the likeliest candidate for the deal.
Citing sources familiar with the matter, the publication says the Singapore-based multi-service and superapp operator could pay a little more than 1 billion euros to Delivery Hero for its Foodpanda businesses in the seven Southeast Asian countries mentioned earlier. Grab did not immediately reply to a request for comment by Bloomberg or Reuters.
The reports added that Delivery Hero’s partial sale is due to stagnated growth in Southeast Asia since COVID-19 lockdowns eased. As for its remaining markets in Asia, it is believed that the company will continue to operate its Foodpanda business in Bangladesh, Hong Kong, Pakistan and Taiwan.
Provided that Wirtschaftswoche’s report is accurate, it is uncertain whether Foodpanda will continue to operate in Southeast Asia by retaining its brand identity after the supposed takeover. However, it is also possible that the service will be completely assimilated by Grab, given the fact that it already has its own p-hailing business.
(Source: Reuters / Bloomberg / Wirtschaftswoche)
