Despite economic challenges, Thailand's food delivery and on-demand super apps continued to grow moderately last year.
Total revenue generated by major food delivery and on-demand super apps reached 31.7 billion baht in 2023, up from 27 billion in 2022, according to business data provider Creden.co.
Grab Taxi (Thailand) posted a profit for a second consecutive year, with revenue expanding 2.8% to 15.6 billion baht in 2023, the lowest growth rate recorded over the past few years. However, the company's profit tallied 1.3 billion baht, surging 127% year-on-year.
Lineman (Thailand) posted revenue of 11.6 billion baht in 2023, up 49% year-on-year. However, it still recorded a loss of 253 million baht last year, a vast improvement on the 2.7-billion-baht loss recorded in 2022.
Delivery Hero (Thailand), the operator of Foodpanda, posted revenue growth of 5.9% to 3.8 billion baht but still made a loss of 522 million baht, which was an improvement on the 3.2-billion-baht loss recorded in 2022.
Uber Technologies Inc and Delivery Hero SE reached an agreement in May for Uber to acquire Delivery Hero's Foodpanda delivery business in Taiwan for US$950 million in cash.
Siam Commercial Bank's Purple Ventures, the operator of Robinhood, posted revenue of 724 million baht in 2023, up 34% year-on-year, but recorded a wider loss of 2.1 billion baht compared with the 1.9-billion-baht loss posted in 2022.
In 2022, Robinhood's revenue stood at 538 million baht, a 3,309% increase from 15 million baht recorded in 2021.
Robinhood continued to expand its services from food, rides, messengers, and travel and continues to use subsidised pricing.
Anantaporn Lapsakkarn, senior researcher at Kasikorn Research Center (K-Research), told the Bangkok Post the overall performance of on demand super apps is moving towards sustainable growth with fewer losses.
Online food delivery services have reached a more mature stage as users have returned to regular lifestyles. Due to the challenging economy, all players have to boost their core competencies and still utilise promotions in order to increase sales during off-peak periods. Price competition has become less intensive.
"We will see those online food delivery and on demand super apps seek more new revenue streams and grow more healthily," said Mr Anantaporn.