Foodpanda’s Parent Company in Talks with Grab for Partial Business Sale

Following the easing of lockdown restrictions, the appreciation for delivery riders and services like Foodpanda and Grab has grown immensely. These platforms have redefined the convenience of getting food without traveling long distances.

However, recent reports suggest that Delivery Hero, the parent company of Foodpanda, is engaged in discussions with Grab regarding the partial sale of their business. According to Channel News Asia (CNA), a Singapore-based news outlet, Delivery Hero, headquartered in Germany, intends to divest its operations under the Foodpanda brand across South-East Asia, particularly in countries like Singapore, Malaysia, Cambodia, the Philippines, Laos, Myanmar, and Thailand.

Wirtschaftswoche, a prominent business journal, has reported that Grab, based in Singapore, is contemplating an offer of approximately €1 billion (RM4.9 billion) to acquire the company. It’s important to note that Grab has not provided an official response, and the negotiation process is ongoing.

Delivery Hero’s primary revenue stream undeniably stems from its delivery services in Asia. However, it’s been noted that growth has slowed down considerably as lockdown restrictions eased. Nonetheless, the company has expressed its commitment to achieving profitability after significant investments over time.

The future of Foodpanda in the Asia-Pacific region remains uncertain. Still, according to CNA, the parent company of Foodpanda has affirmed that discussions are ongoing.