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Southeast Asian food delivery GMV growth plunges to 5 percent
Despite the overall shift in consumer trend to online services during the pandemic, the region's food delivery platforms grew a mere 5 percent in GMV last year, plunging from 30 percent in 2021.
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A GrabFood driver wears a protective mask as he passes along a Jakarta street on July 13, 2020. (REUTERS/Ajeng Dinar Ulfiana)
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outheast Asia’s online food delivery platforms recorded growth of a mere 5 percent in gross merchandise value (GMV) in 2022, indicating a massive slowdown in a sector that was brimming with confidence in previous years but must now turn a profit.
That is the overview of the Food delivery platforms in Southeast Asia report released on Tuesday by Singaporean venture outfit Momentum Works, which closely monitors technology business trends in Southeast Asia.
The report also states that region’s food delivery GMV totals US$16.3 billion, with Indonesia having the largest domestic market.
“The competitive landscape became a lot more muted in 2022 compared to 2021,” said Momentum Works CEO Jianggan Li.
Calling the 5 percent figure modest would be an understatement, given that the segment had posted year-on-year (yoy) GMV growth of 91 percent, 183 percent and 30 percent in 2019, 2020 and 2021, respectively.
The report estimates Indonesia’s food delivery market at $4.5 billion, followed by Thailand at $3.6 billion, Singapore at $2.5 billion, the Philippines at $2.4 billion, Malaysia at $2.2 billion and Vietnam at $1.1 billion.
Read also: Indonesia food delivery industry grows 24 percent
