Foodpanda confirms layoffs, talks to sell element of its Asia food shipping and delivery company

Singapore-headquartered foods delivery service Foodpanda on Friday verified to CNBC that it is conducting its latest round of layoffs as the have to have to be “more agile stays vital.”

“Our business priority proper now is to develop into leaner, more efficient and even much more agile. To do this, we require to streamline our operations so we can consider on a extra structured tactic for the coming times,” Jakob Sebastian Angele, APAC CEO of Foodpanda, said in a letter shared with employees witnessed by CNBC.

He did not mention the amount of workers impacted nor departments affected.

This is Foodpanda’s 3rd spherical of layoffs considering the fact that position cuts in February and September past yr amid macroeconomic headwinds, according to media reviews. Grab and Deliveroo have also decreased headcount this calendar year.

“While we now implemented some measures before this 12 months, there is additional we have to do to create the right set-up for our functions,” said Angele.

Individuals actions include examining organizational composition across each regional and nation groups as perfectly as shifting some useful reporting strains into unique leaders for much more consistency and focus, reported Angele.

The layoffs occur as Foodpanda mother or father Shipping Hero is in preliminary discussions with possible purchasers to market section of its Southeast Asian foodstuff shipping and delivery organization, the Berlin-based company confirmed with CNBC on Friday.

On Wednesday, German media outlet WirtschaftsWoche noted that Supply Hero is advertising its functions beneath the Foodpanda brand in Singapore, Cambodia, Malaysia, Myanmar, Philippines, Thailand and Laos.

“Supply Hero confirms negotiations with various events pertaining to a opportunity sale of its foodpanda enterprise in chosen Southeast Asia marketplaces. Any conversations or designs are in their preliminary stages,” the company told CNBC in an e-mail, with out mentioning unique marketplaces.

The German media report also stated that competitor Seize could be a consumer. When CNBC achieved out, Get declined to comment on the matter.

“Grab’s competition no matter whether Gojek or Foodpanda are getting rid of market place share. Seize is getting market share in deliveries from Foodpanda who may even exit few markets in because of program. Foodpanda is dis-advantaged because of to its stand-alone delivery design,” stated Sachin Mittal, head of telecom, media and technology investigate at DBS Financial institution, in a Sept. 21 notice.

Grab is the chief in Southeast Asia’s food items supply industry, holding 54% of the region’s gross merchandize price in 2022, whilst Foodpanda captured 19% and Gojek held 12%, according to a report from tech investigation company Momentum Performs.

Food shipping gamers are trying to stay afloat amid economic headwinds. Get slashed costs in the previous few quarters as the organization concentrated on profitability. Shipping Hero formerly mentioned that its “target remains on our extensive time period dedication to making a sustainable, worthwhile small business.”

Supply Hero has however to come to be successful because its inception in 2011. For the initially fifty percent of 2023, Supply Hero described a web loss of 832.3 million euros ($886.9 million), in comparison with a decline of 1.495 billion euros a calendar year prior.

Jonathan Woo, senior exploration analyst at Phillip Securities Investigate, stated that Foodpanda perhaps selling Southeast Asia firms is “regular marketplace consolidation just after rigorous competition, specially as scrutiny about profitability intensifies.”

“Only a handful of industry players — Get, GoTo — in Southeast Asia could invest in out Foodpanda,” stated Woo, introducing that such an acquisition would be “most captivating to Seize” which is far more entrenched in the location in comparison to GoTo or Deliveroo.

GoTo is the combined enterprise following a merger in between Indonesia’s Gojek, which operates journey-hailing and foodstuff supply companies, and e-commerce giant Tokopedia.

In December 2021, Foodpanda introduced it would scale down operations in Germany and exit the Japan marketplace. Both of those Foodpanda and Seize have expanded to dine-in services as individuals resume their day by day routines and go out and dine in far more frequently.