Back in September, it was reported that Berlin-based Delivery Hero was planning on selling its Foodpanda brand’s operations in Southeast Asia. The company then confirmed the rumour, announcing that it was in the early stages of negotiations to sell off its businesses in Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar, and Laos.
A new report by NST provides an update for the Malaysian operation of Foodpanda, citing sources that claim the company could be disposed off by December this year. Additionally, the sources stated that the Malaysian Foodpanda staff are completely in the dark about what’s to come, but some have apparently already started looking for a new job.
Foodpanda Malaysia said it had nothing new to share when asked by NST about the potential sale. While the buyer has not been confirmed, it is speculated to be Singapore’s Grab, which is one of Delivery Hero’s major rivals in the food delivery segment in the region.
Notably, this has raised some concerns regarding Grab obtaining a monopoly in Southeast Asia if the deal goes through, given that Foodpanda has a market share of 30-40% in each country it operates in. Malaysian Institute of Economic Research economist Dr Shankaran Nambiar said a sale to Grab is a matter for Malaysia Competition Commission’s (MyCC) consideration, while some on social media suggest that Shopee or airasia could buy the food delivery service to expand their own.
(Source: NST)
