Grab continues to steer Southeast Asia’s food delivery when it comes to gross merchandise value (GMV), generating almost half of the region’s total GMV of $15.5 billion – one other all-time high – after debuting on the NASDAQ in early December 2021 following a record $40 billion merger with a special purpose acquisition company (SPAC), which is the world’s largest special purpose acquisition company (SPAC) transaction.
Grab generated $7.6 billion in GMV last 12 months, based on Momentum Works Food Delivery Platforms in Southeast Asia 2021 report. Grab contributed $5.9 billion in vehicle GMV to a complete of $11.9 billion in Southeast Asia in 2020, based on the report.
Next in 2021 were Foodpanda ($3.4 billion) and Gojek/GoTo ($2 billion), all of which maintained their positions from the previous 12 months.
According to Momentum Works, Grab’s food delivery service has 4 benefits: lower user and partner acquisition costs, local leadership with product localization, good partnerships with local governments, and an initial public offering.
Grab, however, is having trouble controlling its hyperlocal expansion in each country. Grab must reconcile the product, technology and data needs of multiple business units across its mega app.
The study shows that when it comes to market share, Grab is the leader in Indonesia, Thailand, Singapore, Vietnam and the Philippines. In Malaysia, it was pushed into second place by Foodpanda, which had 49 percent market share in comparison with Grab’s 48 percent.
Line Man, a regional operator with a 22 percent market share in Thailand, is one in every of the regional players making inroads on this market.
According to Momentum Works, Line Man, Grab, Gojek and Foodpanda are progressively specializing in grocery and fast commerce, leveraging their existing delivery infrastructure and user base.
The study also found that the margins of those key players are improving, paving the best way for his or her diversification efforts. “Profitability can be achieved by increasing operational efficiency, increasing order volume and delivery density, and adding additional services to better monetize the platform and retain customers,” the report said.
Source: Momentum Works, Techin Asia, Technode.global
