Grab remains the top player in Southeast Asia’s food delivery market, increasing its lead versus Foodpanda, a recent Momentum Works report reveals.
ShopeeFood has surpassed Gojek’s GoFood as the third-largest food delivery platform in the region.
In 2024, ShopeeFood’s regional GMV was US$2.3 billion, still far below Grab’s US$10.4 billion
Given the gap in market share between GrabFood and its competitors, it might be very difficult to imagine anyone overtaking the food delivery giant.
It comfortably holds a market share of between 46% and 66% in each of the six major markets in Southeast Asia.
However, it might want to keep an eye out for ShopeeFood in the long run. It’s gross merchandise value (GMV) continued to rise from US$900 million in 2022 to US$2.3 billion in 2024, according to Momentum Works.
Shopee previously managed to overtake market leader Lazada in the ecommerce space. It’s not impossible that ShopeeFood could achieve the same feat in food delivery in the future.
However, it will be neither easy nor cheap. One key factor is Shopee’s commitment to investing more in ShopeeFood, particularly in increasing promotions such as discounts or cashback.
Shopee is known for its aggressive promotional strategy – especially free shipping, which has been a major draw for consumers. Currently, one of the biggest costs in food delivery is the delivery fee. But is it possible to apply the same strategy in this business?
On top of that, Shopee still has to focus on its core business – ecommerce – which is facing competition from TikTok Shop. There’s also Temu lurking in several countries, though it doesn’t yet appear to be as aggressive as it is in the US.
Parent company Sea’s US-listed shares have outperformed recently. Over the past year, they have been up by 210%. But this also means the company needs to maintain its profitability to keep investors happy. It may be difficult for Shopee to go all out and invest aggressively in both ecommerce and food delivery at the same time.
Whatever happens, Grab needs to stay alert and prepare to fend off competition from Shopee.
The Grab-GoTo merger is certainly something that could also help strengthen Grab’s market position in the region. If the deal pushes through, Grab’s market share in Indonesia – the largest food delivery market in Southeast Asia – would reach 82%, with the balance held by Shopee. That would make it a much more formidable competitor in the archipelago.
Source: Tech in Asia