The combined gross merchandise value (GMV) of Thailand's online food delivery and ride-hailing services in the first half of 2024 reached US$5 billion, according to India-based Redseer Strategy Consultants.
Both markets are expected to achieve double-digit growth during the period 2023 to 2028, driven by strong demand among digital consumers and the availability of a greater number of drivers.
For the first half of 2024, Line Man's market share in terms of transactions took the lead with a 44% share, followed by Grab (40%), ShopeeFood (10%) and others, comprising Foodpanda and Robinhood (6%), according to Roshan Behera, a partner at Redseer Strategy Consultants who focuses on Southeast Asia.
However, according to Grab Thailand clarification, it has never disclosed any business or transaction data of Grab to the Redseer and has not shared the number of transactions for its food delivery business for the first half of 2024 with any external parties.
Therefore, the details of Grab’s market share of 40% are not data provided by Grab, thus, it does not endorse the accuracy of the information.
According to Redseer, the GMV growth for food delivery is driven by user demand, thanks to urbanisation, changing lifestyles and healthy eating/multi-cuisine options delivered quickly and conveniently.
In terms of supply, with the highly fragmented nature of food and beverage (F&B) outlets in Thailand, the services of food delivery players have become crucial, Mr Behera added.
Thailand has one of the highest proportions of supply drivers for food per food stall at 52% of total F&B outlets including street stalls and kiosks in 2023, following Singapore at 78%.
The competitive landscape in Thailand has evolved quite rapidly, with the top two players swapping positions in terms of market share.
Meanwhile, ShopeeFood, leveraging its horizontal platform capabilities and user base, is on the rise.
Overall, the market appears to be converging towards a duopoly structure, with a potential third contender.
The food delivery market in Thailand continues to grow. Its GMV is expected to increase from $4.2 billion in 2023 to $7.1 billion by 2028 with compound average growth from 2023 at 11%, thanks to the rise in basket size and increasing number of daily orders.
The ride-hailing market in Thailand is poised to double in the next five years. Its GMV of $600 million in 2023 is expected to grow to $1 billion by 2028.
Key players in this market include Grab, Line Man, Bolt, inDrive and Maxim.
The ride-hailing market's expansion is led by factors such as the resurgence in tourism, the rise in vehicle and driver availability, changing consumer behaviour and other strong demand and supply influences.
The top three players are expected to hold over 85% of the market share.