A courier for Foodpanda, a meal-delivery service operated by Supply Hero AG, checks his smartphone whereas sitting on a bike on the firm’s operations heart in Bangkok, Thailand, on Friday, March 16, 2018. Bangkok’s famed love affair with meals is spilling over to meal-delivery apps, a fledgling sector that Foodpanda tasks will surge in 2018 as competitors intensifies. Photographer: Brent Lewin/Bloomberg through Getty Photographs
Brent Lewin | Bloomberg | Getty Photographs
Singapore-headquartered meals supply service Foodpanda on Friday confirmed to CNBC that it’s conducting its newest spherical of layoffs because the have to be “extra agile stays important.”
“Our firm precedence proper now’s to develop into leaner, extra environment friendly and much more agile. To do that, we have to streamline our operations so we will tackle a extra structured method for the approaching days,” Jakob Sebastian Angele, APAC CEO of Foodpanda, stated in a letter shared with workers seen by CNBC.
He didn’t point out the variety of workers impacted nor departments affected.
That is Foodpanda’s third spherical of layoffs since job cuts in February and September final yr amid macroeconomic headwinds, based on media experiences. Seize and Deliveroo have additionally decreased headcount this yr.
“Whereas we already applied some measures earlier this yr, there’s extra we now have to do to create the proper set-up for our operations,” stated Angele.
These measures embody reviewing organizational construction throughout each regional and nation groups in addition to shifting some practical reporting strains into totally different leaders for extra consistency and focus, stated Angele.
The layoffs come as Foodpanda father or mother Supply Hero is in preliminary discussions with potential patrons to promote a part of its Southeast Asian meals supply enterprise, the Berlin-based firm confirmed with CNBC on Friday.
On Wednesday, German media outlet WirtschaftsWoche reported that Supply Hero is promoting its operations underneath the Foodpanda model in Singapore, Cambodia, Malaysia, Myanmar, Philippines, Thailand and Laos.
“Supply Hero confirms negotiations with a number of events relating to a possible sale of its foodpanda enterprise in chosen Southeast Asia markets. Any discussions or plans are of their preliminary levels,” the agency advised CNBC in an e mail, with out mentioning particular markets.
The German media report additionally stated that competitor Seize may very well be a purchaser. When CNBC reached out, Seize declined to touch upon the matter.
“Seize’s rivals whether or not Gojek or Foodpanda are dropping market share. Seize is gaining market share in deliveries from Foodpanda who would possibly even exit few markets sooner or later. Foodpanda is dis-advantaged attributable to its stand-alone supply mannequin,” stated Sachin Mittal, head of telecom, media and expertise analysis at DBS Financial institution, in a Sept. 21 observe.
Seize is the chief in Southeast Asia’s meals supply market, holding 54% of the area’s gross merchandize worth in 2022, whereas Foodpanda captured 19% and Gojek held 12%, based on a report from tech analysis agency Momentum Works.
Powerful working surroundings
Meals supply gamers are attempting to remain afloat amid financial headwinds. Seize slashed prices up to now few quarters because the agency targeted on profitability. Supply Hero beforehand stated that its “focus stays on our long run dedication to constructing a sustainable, worthwhile enterprise.”
Supply Hero has but to develop into worthwhile since its inception in 2011. For the primary half of 2023, Supply Hero reported a internet lack of 832.3 million euros ($886.9 million), in contrast with a lack of 1.495 billion euros a yr prior.
Jonathan Woo, senior analysis analyst at Phillip Securities Analysis, stated that Foodpanda doubtlessly promoting Southeast Asia companies is “typical market consolidation after intense competitors, particularly as scrutiny over profitability intensifies.”
“Only some market gamers — Seize, GoTo — in Southeast Asia might purchase out Foodpanda,” stated Woo, including that such an acquisition can be “most interesting to Seize” which is extra entrenched within the area in comparison with GoTo or Deliveroo.
GoTo is the mixed firm following a merger between Indonesia’s Gojek, which operates ride-hailing and meals supply companies, and e-commerce big Tokopedia.
In December 2021, Foodpanda introduced it could scale down operations in Germany and exit the Japan market. Each Foodpanda and Seize have expanded to dine-in companies as shoppers resume their every day routines and exit and dine in additional often.
