A courier for Foodpanda, a meal-delivery service operated by Supply Hero AG, checks his smartphone whereas sitting on a motorbike on the firm’s operations middle in Bangkok, Thailand, on Friday, March 16, 2018. Bangkok’s famed love affair with meals is spilling over to meal-delivery apps, a fledgling sector that Foodpanda tasks will surge in 2018 as competitors intensifies. Photographer: Brent Lewin/Bloomberg by way of Getty Photos
Brent Lewin | Bloomberg | Getty Photos
Singapore-headquartered meals supply service Foodpanda on Friday confirmed to CNBC that it’s conducting its newest spherical of layoffs because the have to be “extra agile stays crucial.”
“Our firm precedence proper now could be to change into leaner, extra environment friendly and much more agile. To do that, we have to streamline our operations so we will tackle a extra structured method for the approaching days,” Jakob Sebastian Angele, APAC CEO of Foodpanda, mentioned in a letter shared with workers seen by CNBC.
He didn’t point out the variety of workers impacted nor departments affected.
That is Foodpanda’s third spherical of layoffs since job cuts in February and September final yr amid macroeconomic headwinds, in accordance with media reviews. Seize and Deliveroo have additionally diminished headcount this yr.
“Whereas we already applied some measures earlier this yr, there’s extra we now have to do to create the precise set-up for our operations,” mentioned Angele.
These measures embrace reviewing organizational construction throughout each regional and nation groups in addition to shifting some useful reporting traces into completely different leaders for extra consistency and focus, mentioned Angele.
The layoffs come as Foodpanda mum or dad Supply Hero is in preliminary discussions with potential patrons to promote a part of its Southeast Asian meals supply enterprise, the Berlin-based firm confirmed with CNBC.
On Wednesday, German media outlet WirtschaftsWoche reported that Supply Hero is promoting its operations beneath the Foodpanda model in Singapore, Cambodia, Malaysia, Myanmar, Philippines, Thailand and Laos.
“Supply Hero confirms negotiations with a number of events concerning a possible sale of its foodpanda enterprise in chosen Southeast Asia markets. Any discussions or plans are of their preliminary phases,” the agency instructed CNBC in an e mail, with out mentioning particular markets.
The German media report additionally mentioned that competitor Seize may very well be a purchaser. When CNBC reached out, Seize declined to touch upon the matter.
“Seize’s rivals whether or not Gojek or Foodpanda are shedding market share. Seize is gaining market share in deliveries from Foodpanda who would possibly even exit few markets sooner or later. Foodpanda is dis-advantaged as a consequence of its stand-alone supply mannequin,” mentioned Sachin Mittal, head of telecom, media and expertise analysis at DBS Financial institution, in a Sept. 21 word.
Seize is the chief in Southeast Asia’s meals supply market, holding 54% of the area’s gross merchandize worth in 2022, whereas Foodpanda captured 19% and Gojek held 12%, in accordance with a report from tech analysis agency Momentum Works.
Robust working atmosphere
Meals supply gamers try to remain afloat amid financial headwinds. Seize slashed prices previously few quarters because the agency centered on profitability. Supply Hero beforehand mentioned that its “focus stays on our long run dedication to constructing a sustainable, worthwhile enterprise.”
Supply Hero has but to change into worthwhile since its inception in 2011. For the primary half of 2023, Supply Hero reported a internet lack of 832.3 million euros ($886.9 million), in contrast with a lack of 1.495 billion euros a yr prior.
Jonathan Woo, senior analysis analyst at Phillip Securities Analysis, mentioned that Foodpanda probably promoting Southeast Asia companies is “typical market consolidation after intense competitors, particularly as scrutiny over profitability intensifies.”
“Only some market gamers — Seize, GoTo — in Southeast Asia may purchase out Foodpanda,” mentioned Woo, including that such an acquisition can be “most interesting to Seize” which is extra entrenched within the area in comparison with GoTo or Deliveroo.
GoTo is the mixed firm following a merger between Indonesia’s Gojek, which operates ride-hailing and meals supply companies, and e-commerce big Tokopedia.
In December 2021, Foodpanda introduced it might scale down operations in Germany and exit the Japan market. Each Foodpanda and Seize have expanded to dine-in companies as shoppers resume their day by day routines and exit and dine in additional continuously.