Delivery Hero, the parent company of Foodpanda, is planning to sell its operations in several Asian markets, including Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand. However, Foodpanda in Bangladesh and Pakistan is excluded from this list. Foodpanda and its subsidiaries in Bangladesh incurred significant losses, totaling over Tk850 crore (approximately €74 million) from 2016 to 2022, with 2022 being particularly challenging due to various economic factors, including the Ukraine war. Despite the losses, Foodpanda remained a dominant player in Bangladesh, serving every district town and engaging a large number of freelance riders.
The exclusion of Bangladesh and Pakistan from the sale may be attributed to their market leadership potential, despite the losses, and the desire to eventually achieve profitability with less competition. Foodpanda faced fierce competition in the selected Asian markets, impacting its profitability. Delivery Hero aims to balance growth and profitability to maintain investor confidence, and the group as a whole reached adjusted profit before interest, tax, depreciation, and amortization (EBITDA) in the first half of the year, following a €323 million loss in the same period the previous year.
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