Southeast Asia’s food delivery spending grew at the slowest pace in at least four years in 2022, highlighting the challenges faced by regional internet giants Grab Holdings Ltd. and GoTo Group.
Online food delivery spending rose 5% to US$16.3 billion ($21.51 billion), according to an annual report by Singapore-based consultancy Momentum Works. That was the smallest gain since 2018, when the company started tracking data. Growth in the Philippines, Malaysia and Vietnam offset declines in Singapore, Indonesia and Thailand.
Singapore-based Grab extended its lead in Southeast Asia’s food delivery market. The company, with operations in eight countries, posted gross merchandise value of US$8.8 billion last year, accounting for 54% of the market. Delivery Hero SE’s Foodpanda, which operates across Asia, posted GMV of US$3.1 billion in Southeast Asia, making up 19% of the total, followed by GoTo’s Gojek and Line Man, the report showed.
