Recently, news about Grab’s plans to acquire foodpanda’s operations in Singapore and Malaysia has surfaced.
On 21 September 2023, it was revealed that Grab Holdings, their closest regional competitor, was the front runner in the bid for foodpanda’s operations in Singapore.
However, it appears that Grab is now facing a significant challenge.
Just when they might have thought they were the top contender in the market, another rival entered the ring to compete to acquire foodpanda in Singapore.
China’s Food Delivery Giant Meituan Shows Interest in Buying Over S’pore’s foodpanda
According to Bloomberg, Meituan, the China-based food delivery giant, is reportedly exploring the acquisition of the Delivery Hero business in Southeast Asia.
The company is considering diversifying beyond its home market.
In case you need to get up to date, back in September, food delivery firm Delivery Hero, the Berlin-based parent company of foodpanda, announced that it was in discussions to sell a portion of its operations in Southeast Asia.
This decision came as growth in the region had slowed since the easing of COVID-19 lockdowns.
The potential deal aims to divest Delivery Hero’s Foodpanda brand across various countries, including Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar, and Laos.
Bloomberg stated that it’s important to note that there’s no guarantee that these negotiations will lead to a finalised transaction. Other potential bidders may also come into play.
However, if the deal does come to fruition, Meituan’s expansion into Southeast Asia could pose a significant challenge for Grab Holdings.
Both Meituan and Grab have refrained from making official comments on the matter.
How Big is Meituan?
For those unfamiliar with Meituan, we’ve got you covered.
Think of it like Grab, but in China.
Meituan has risen to become the largest food delivery platform in China.
Founded in 2010, Meituan has evolved into China’s food delivery platform, operating in over 2,800 cities within the world’s second-largest economy.
Meituan’s reach is extensive, with a staggering 600 million users and close to 4.5 million business partners spanning nearly every corner of China.
Approximately 35 million people rely on its services every day.
Should Meituan venture into Southeast Asia, it would undoubtedly pose a significant challenge for Grab Holdings, the Singapore-based company renowned for its ride-sharing, food delivery, and fintech services, which has recently achieved profitability on an adjusted basis.
Meituan’s presence would dominate that of Grab’s existing regional competitors.
In the quarter ending in June, Meituan experienced its rapid revenue growth since 2021. The company has diversified into related areas, from grocery retail to group buying.
In March, it discontinued its ride-hailing service to trim costs, focusing instead on substantial investments in live-streaming services to fend off competitors like ByteDance’s Douyin.
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