Food delivery service Foodpanda, based in Singapore, is undergoing another round of layoffs as it seeks to enhance agility amid challenging market conditions. The company’s Asia-Pacific CEO, Jakob Sebastian Angele, highlighted the need to streamline operations and adopt a structured approach for the future. While specific details regarding the number of affected employees and impacted departments were not disclosed, this marks the third round of layoffs for Foodpanda, following earlier cuts in February and September of the previous year.
As part of its efforts to optimize operations, Foodpanda is reviewing its organizational structure, both at the regional and country levels. The company is also reassigning some functional reporting lines to different leaders to enhance consistency and focus.
This announcement comes as Foodpanda’s parent company, Delivery Hero, engages in preliminary discussions with potential buyers for the sale of portions of its Southeast Asian food delivery business. Although specific markets were not mentioned, reports suggest that Delivery Hero is looking to divest its operations under the Foodpanda brand in several Southeast Asian countries. Competitor Grab is speculated to be a potential buyer.
In the highly competitive food delivery market, Grab currently holds a dominant position, capturing 54% of the region’s gross merchandise value in 2022, according to tech research firm Momentum Works. Foodpanda and Gojek account for 19% and 12%, respectively.
Market experts suggest that Foodpanda’s potential divestment aligns with broader market consolidation trends and the pursuit of profitability. Grab, deeply entrenched in Southeast Asia, is considered a likely candidate to acquire Foodpanda’s Southeast Asian assets should a sale occur.
Food delivery companies are navigating challenging economic conditions, with players like Grab and Delivery Hero prioritizing profitability while facing ongoing losses. This market volatility has driven efforts to optimize operations and consider strategic consolidation to maintain competitiveness.