As the world transitioned into post-pandemic world, 2023 was a year of recalibration year for Thailand’s food delivery industry. Here’s my…
Navigating Change: Thailand’s On-Demand Food Delivery Landscape 2023 Recap and 2024 Prediction
As the world transitioned into post-pandemic world, 2023 was a year of recalibration year for Thailand’s food delivery industry. Here’s my brief recap of 2023 and forecasts for what lies ahead
📉 Market Contraction: For the 1st time, the industry experienced a 7–8% shrinkage, highlighting changing consumer behaviors, market challenges, and more intense competition
📊 Adapting Strategies: There was much less user promotions. Platforms recalibrated their promotional strategies in response to a notable shift of consumer behavior towards out-of-home dining and a pressure for profits. This strategic pivot aimed to balance the scales between attracting users and marching towards profitability.
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🥇 **Battle for Leadership **: Grab retained its leadership position, while LINEMAN emerged as a formidable contender, showcasing significant growth amid the market downturn.
Source: Momentum Works
As we look ahead to 2024, here are my predictions
💸** Marketing Costs**: As advertising becomes a key revenue stream for delivery platforms, its cost for restaurants will rise and ROI effectiveness will be crucial. Restauranteurs should keep eyes on the results, continuously optimize their ad spend and use monitoring tools for better decision-making.
🔧 Tech Integration: Expect advancements in technologies to enable more opportunities to optimize operations such as POS integration which has been slow in the past. Embracing these changes will be key to streamlining operations and fostering growth, especially for SME
🔄 The Foodpanda Factor: as seen in the news, foodpanda has been seeking to leave the region. The approach of Foodpanda’s potential departure could reshape the industry’s future. This leaves us with interesting questions. Will it consolidate Grab’s hold on the market, elevate LINEMAN, or pave the way for new players?
As we look towards 2024, Thailand’s food delivery industry stands at a crossroads, shaped by market recalibrations, technological advancements, and strategic shifts. The potential reshuffling of market players, coupled with the rise in technological integration, suggests a vibrant yet challenging landscape ahead.