Grab captured 55% of Southeast Asia's food delivery market in 2023

Southeast Asia's food delivery market is heating up, with Grab firmly in the lead. The super app captured a whopping 55% of the region's gross merchandise value (GMV) in 2023, leaving rivals Foodpanda and Gojek trailing behind with declines of 12.9% and 10%, respectively. 

This dominance is further highlighted by the fact that Grab only counts 5% of the region's 600 million population as monthly transacting users, showcasing the vast potential for future growth. Despite a modest overall growth of 5%, the region's food delivery market reached a staggering US$17.1 billion in 2023. 

Vietnam emerged as the star performer, experiencing a 28% GMV increase, while Malaysia, Thailand, and Indonesia followed suit. Singapore, however, remained flat in terms of growth. Beyond Grab's reign, the market is witnessing significant shifts and trends. Consolidation is a major theme, with Delivery Hero exiting Vietnam and attempting to sell Foodpanda in Southeast Asia. Meanwhile, Line Man Wongnai acquired a majority stake in Rabbit Line Pay, signaling a potential shakeup in the competitive landscape.

Another key trend is the arrival of Chinese F&B giants like Luckin Coffee and Cotti Coffee. These brands, recognizing the region's growth potential, are entering the market with the hopes of capturing a significant share. Commenting on the market dynamics, Jianggan Li, CEO and founder of Momentum Works, stated: "With robust F&B consumption, low food delivery penetration, and ongoing consolidation, there is a lot of room for growth for food delivery platforms in the region."

While Grab currently holds the crown, the future of Southeast Asia's food delivery market remains open. The rise of Vietnam, the entrance of Chinese players, and the ongoing consolidation efforts are all factors that could reshape the landscape in the years to come.