Bloomberg reports that LINEMAN Wongnai is in negotiations to acquire Foodpanda in Thailand from Delivery Hero, which LINEMAN Wongnai had previously considered acquiring Foodpanda at a value of 3,478 million baht, but had a price reduction of 3,400 million baht due to the transportation market. Food in Thailand has started to slow down.
However, Foodpanda is considered the first food delivery platform in Thailand. Which provides services covering all 77 provinces, where LINEMAN Wongnai is outstanding in providing service in Bangkok This acquisition should come in to help strengthen the weaknesses in the provincial areas that LINEMAN Wongnai still lacks
According to data from 2020, Foodpanda and LINEMAN Wongnai have market share of 23% and 20% respectively, which is still behind Grab with approximately 50% share.
If LINEMAN Wongnai really buys Foodpanda, it will increase its market share to 43%, which will immediately make it more competitive with Grab.
source : Bloomberg
