Singapore-based food delivery titan, Foodpanda, is once again in the headlines, but this time for reasons that have left many in the Asia Pacific business community concerned:
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- Layoffs on the Horizon: Confirming reports to CNBC, Foodpanda is gearing up for its latest series of job cuts, emphasizing the need to maintain agility in a competitive market. This marks the third instance of workforce reduction, following similar actions in February and September of the previous year.
- Behind the Scenes: These layoffs coincide with murmurs of Foodpanda’s parent entity, Delivery Hero, engaging in preliminary talks to offload a segment of its Southeast Asian food delivery operations.
- CEO Speaks Out: In a candid letter to the workforce, Jakob Sebastian Angele, the APAC CEO of Foodpanda, shed light on the company’s current direction. He stressed the importance of evolving into a “leaner, more efficient, and agile” entity. Angele highlighted the need for a more structured operational approach, hinting at further changes in the pipeline.
- Restructuring in Play: Angele’s letter also touched upon the ongoing review of the company’s organizational structure. This encompasses both regional and country teams, with a potential reshuffling of functional reporting lines to ensure greater consistency and focus.
- Strategic Shifts: Foodpanda’s recent decisions align with its broader strategy to bolster profitability. This was evident when the company ceased its operations in Germany and made an exit from the Japanese market in December 2021.
- Market Speculations: The grapevine is abuzz with speculations of Grab, a formidable rival to Foodpanda, potentially acquiring the latter’s Southeast Asian ventures. A report from tech research entity, Momentum Works, offers a glimpse into the market dynamics. While Grab dominated the Southeast Asian food delivery space with a 54% share in 2022, Foodpanda trailed with 19%, and Gojek secured 12%.
In the rapidly evolving food delivery landscape of the Asia Pacific, Foodpanda’s strategic moves underscore the challenges and opportunities inherent in the sector. As the company navigates its path, industry stakeholders and consumers alike will be keenly watching its next steps.
