1、In focus:food delivery platforms in Southeast AsiaTrends,numbers,strategies&outlook31 Jan 20241 Momentum Works Momentum WorksAbout Momentum WorksIMMERSIONSVENTURESADVISORYMomentum Works is a venture outfit headquartered in Singapore.It connects and empowers the digital and new economy ecosystem in e

2、merging markets through well-researched insights,community,and venture-building experience.momentum.asia22 Momentum Works Momentum Works3JiangganLizSabrinaThe team on this project3VionBryanElodyYorlin Momentum WorksReport briefingThis is Momentum Works 4th annual Food Delivery Platforms in Southeast

3、 Asia reportinsights.momentum.asiaClick cover to download4Jan 2024Report briefingJan 2021Jan 2022Jan 2023 Momentum WorksJoin the Momentum Works immersions!Register5Q3 2023Q4 202319-21 March 2024Digital Leadership Immersion Ecommerce ecosystem Business Immersion RegisterQ2 2024Momentum Works 2024.All

4、 rights reserved.The material contained in this document is the exclusive property of Momentum Works.Any reliance on such material is made at the users own risk.6In the next 45 minutes 1.Global development2.Southeast Asias key trends in 20233.Southeast Asias food delivery in numbers4.Key players and

5、 strategies 5.Where to find growth?6.What will happen in 2024?Momentum WorksVietnam(30%growth)stands out amidst the regions modest topline gainFood delivery GMV(US$)Some key numbers we will go through7Southeast Asia food delivery platform GMV grew 5%yoy to US$17.1BSoutheast Asia(6 markets)food deliv

6、ery GMV(US$)Grab continues to extend leadership,while LINE MAN&ShopeeFood grew significantly 1232.2B4.2B15.5BFood delivery GMV(US$)2023 4.6B3.7B2.5B2.5B2.4B1.4B201%183%11.9B202030%16.3B20225%17.1B20235%$0.1 B$9.4 B$2.7 B$1.8 B$1.5 B$0.2 B$0.1 B$1.3 B Momentum Works2023-a year of profitabi

7、lity&further consolidations?Source:Public announcements,company disclosures/reports2015:Gojek launches GoFood in ID ShopeeFood launches in ID,MY,TH MY,SG,THZomato IPOAirasia wants to do food,acquires Gojeks TH operationsGrab becomes public via de-SPACingFoodpanda enters and exits Japan Grab acquires

8、 Jaya Grocer in MY Foodpanda acquires TabSquareSG2020:Doordash IPO2019:ROKs Baemin enters VN2017:SEA acquires Foody.vn(later rebranded ShopeeFood)2012:Foodpandastarts in SEA 2015:Foodpanda exits VN&ID2015:Deliveroo expands into SEA2020:LINE MAN acquires Wongnai in TH2016:UberEats launches in SG 2018

9、:Meituan IPO 2018:Grab buys Uber SEA and launches GrabFoodLINE MAN Wongnai raises US$265m Series B led by GICGoTo IPO on IDXDelivery Hero really wants to sell Foodpanda;nobody is buyingBaemin exits VNLINE MAN Wongnai acquires POS company FoodStory and controlsRabbit Line PayMeituan launches KeeTa in

10、 HKIndias leading platforms become profitable2019:Delivery Hero buys Woowa Brothers,operator of Baemin in ROKPre-2020 2021 20222023Delivery Hero announces group-level positive adj.EBITDAGrab achieves positive group-adjusted EBITDAGoTo divests Tokopedia to TikTok8 Momentum Works Momentum Works9What e

11、lse would you want us to address?A.Temu opening up to US sellers B.Lazadas layoffsC.Shopee vs TikTok ShopD.Chinas demographics9Momentum Works 2024.All rights reserved.The material contained in this document is the exclusive property of Momentum Works.Any reliance on such material is made at the user

12、s own risk.1.Global development10 Momentum WorksNovJulAugDecUS market leader Doordash outperforms its international peers in capital marketsMarSepJunOctFebJanAprMay-50%200%MeituanBeating analysts top&bottom line expectations,DoorDash share price surges 15%in a day Meituan launches Keeta in HKDeliver

13、y Hero announces group-level positive adjusted EBITDA in H1Grab reaches positive group-adjusted EBITDAMeituan launches unmanned delivery and warehouse expansionDelivery Heros BAEMIN exits VNRumours of ByteDance acquiring ele.me from AlibabaMeituan Maicai breaks evenSource:Tradingview11 Momentum Work

14、sDoordash looks to expand1220212023Source:Bloomberg Second Measure 57%15%27%66%8%25%Food delivery market share(%total sales)Doordash and UberEats owns 90%of market shareUS$878Billion Free cash flow of US$878m LTM till Sept 2023“out of the US”and“out of restaurants”Momentum Works2.Meituans most chall

15、enging year since IPO13Source:TradingviewMarJan0.00%HSI|-21.29%3690|-61.50%NovJulAugDecSepJunOctFebAprMay9618|-64.04%9988|-26.68%0700|-14.69%9888|-14.92%What happened in 2023?13 Momentum Works Momentum Works14“We are fully confident in the long-term growth potential of Meituan.The present stock pric

16、e only reflects the value of the food delivery business.”-Meituans founder Wang Xing,23Q3 earnings call14 Momentum Works-Meituan GroceryFresh on demand 1P-Meituan SelectGroup buy,pre-orderBleeding unit-Other BusinessesShared bikes,powerbank rentals and more-Food deliveryYou all know what this is-In-

17、Store,Hotel and TravelIn-Store=“dine in”,earns via adsProfit driver-Meituan InstashoppingInstant 3P ecommerce15Meituans challengesCore Local CommerceNew InitiativesThreatened byIn competition with Momentum WorksMeituan uses deterrence strategy against Douyins aggressionMerchantsConsumers-Massive use

18、r base that are sticky to the platform;-Interactive,rich content format;-Lack of own fulfillment capabilities,partnering with ele.me-fulfillment system;-network of partnered merchants;-most trusted review&rating platformUser base to drive consumer traffic to merchantsFulfillment system to delivery f

19、ood and other goodsHow Douyin featured local services on the platform？16Douyins Nearby page mirrors Meituans services:food delivery,nearby restaurants,tickets,etc.cMeituanDouyin Momentum Works17Meituan falls behind Pinduoduo in community group buyGMV US$30Billion GMVUS$30Billion LossLossMeituan Sele

20、ctDuoduo Maicai Momentum Works Momentum Works18Why is Meituan so cautious about international expansion?18 Momentum Works3.Collapse of confidence in 1P quick commerce 19Largest independent dark store players collapsed CNLarge players experimented and exited 1P shortly:INMissFreshClosed down operatio

21、ns in 2022,and delisted in 2023Globally,investors and operators had a reckoning of the challenges of dark storesacquired by Top 2 players merged;smaller players scaled down or exited.EuropeMost well-funded independent player Gopuff puts IPO on hold;Struggles to achieve profitability,“plans to tap ad

22、vertising”USacquiredby competitorStock price crashed-96%since IPO1Dingdong1.As of Jan 2024.Source:Press search,industry practitioners interviews;Momentum Works insights*Non-exhaustiveRetailRide sharingFood deliveryEcommerce Momentum Works890Break even pointAccording to a major Chinese 1P dark store

23、player affiliated to a large platform Dark stores require volume,density and operational efficiency to breakeven204,000orders/store/day1,247505Q3 2021FY 2022Q3 2023Closed downin July 2022Achieved”positive contribution margin”Momentum Works Momentum Works21Momentum Works Frappuccino indexA fresh lens

24、 on global purchasing power(and affluence)Source:Frappuccino Index 1 2023 of key global cities(NYC=100)New York CityTokyoLondonSingaporeShanghaiParisManilaKuala LumpurDubaiJakartaBangkokHanoi,Ho Chi MinhBangalore21Momentum Works 2024.All rights reserved.The material contained in this document is the

25、 exclusive property of Momentum Works.Any reliance on such material is made at the users own risk.2.Southeast Asias key trends22 Momentum WorksFour key trends23Recovery of F&B Chinese F&B brands Digitising people and organisationDiverging strategies3421 Momentum Works24$125.2Q4(estimated)Total consu

26、mption of out of home food and beverages in 6 major SEA countries(US$billions)1.Momentum Works estimates based on government statistics including Yearbooks and National Accounts of Singapore,Vietnam,Thailand,Indonesia,Philippines,Malaysia;Out-of-home food and beverages or“ready-made food”include ite

27、ms sold in stalls,restaurants,or other retail outlets.2023(Q1-Q3)#1:F&B recovered to pre-pandemic levels Momentum Works2520232020Pre-200192021A sample list#2:Chinese F&B brands enter Southeast Asia en masse Momentum Works26#2.At The Exchange TRX,Kuala Lumpur-3pm on 27 Jan 2024 Momentum Wo

28、rks27Chinas largest coffee chain with 10,000+storesExpanded into SG in 2023,opening 30 stores in the yearEstablished by former founders of Luckin,with 6,000+stores worldwideEntered ID,TH,VN,MY and SG in 2023#2.Luckin vs Cotti Momentum Works28#3.Chinese F&B brought their methodologies Momentum Works2

29、9and many moreThe fragmentation we mentioned last year persists#3.Digitisation of F&B not only as a product Momentum Works30StaffingCommunicationStaffing&CRM1.Traditional general tools2.SaaS for specific areas3.Integrated software toolsAccounting&budgetingFacilities mgmt&reportingBack office-frontli

30、ne communicationsTraining,scheduling&staff turnoverMonitoring a large number of outletsAccounting&budgetingExamples of tools Record,financial mgmtCommunications#3.but also as an organisation of people Momentum Works31Sharpened focus on core food businessNew CEO re-aligning strategy,divested Tokopedi

31、aBecame a part of Shopee except in VN Strengthened ecosystem through acquisitionsLooking to divest“less profitable”markets#4.Diverging strategies of platforms Momentum Works32Delivery Hero:group level positive adjusted EBITDA in H1 2023Delivery Hero in talks to sell part of Asia businessMeituan“seri

32、ously”explores acquiring Foodpanda in SEAMeituan“not acquiring Foodpanda”,reasoning“improfitable”Foodpanda long term CEO Jakob Angele replaced by Taiwan GM John FangAug 2023 20 Sept16 Oct16 Nov30 NovDec 2022LMWN in talks to acquire Foodpanda in THDelivery Hero“will divest less profitable markets”?Fe

33、b 2022Baeminexits VietnamFoodpanda and Baemin Vietnam layoffs amid potential sale Feb 2023 Foodpanda announced a layoff of 1000#4.Consolidation is still happening-Case in point:DeliveryHero Momentum Works33#4.and this weekMomentum Works 2024.All rights reserved.The material contained in this documen

34、t is the exclusive property of Momentum Works.Any reliance on such material is made at the users own risk.3.SEA food delivery in numbers34 Momentum Works35Southeast Asia food delivery platforms GMV(US$B)2.24.211.92023 food delivery GMV grew 5%yoy to US$17.1B*GMV estimation covers only food delivery

35、orders placed through Grab,Foodpanda,Gojek,Deliveroo,LMWN,Baemin,ShopeeFood,and RobinHood.GMV includes all the orders made and sent to restaurant partners,including cancelled and refunded orders.15.520021202216.3202317.191%183%30%5%5%Food delivery in Southeast Asia grew 5%to US$17.1 billi

36、on Momentum WorksVietnam led the growth in all markets362023,food delivery(GMV)1Total size:US$17.1BPhilippines61%39%$2.5BIndonesia50%38%$4.6B12%Thailand47%36%8%6%$3.7B3%Singapore28%63%9%$2.5B1.The 2024 GMV estimation by Momentum Works covers only food delivery orders placed through Grab,Foodpanda,Go

37、jek,Deliveroo,LINE MAN,Baemin,ShopeeFood,Robinhood.GMV includes all the orders created and sent to restaurant partners,including,cancelled and refunded orders.This estimate does not include food delivery orders not placed with any of the platforms,such as orders placed directly with F&B operators.So

38、urce:Industry interviews;data sources including POS systems,fleet owners and payment service providers;consumer surveys;Momentum Works estimatesVietnam47%45%5%3%$1.4B30%65%$2.4B5%Malaysia Momentum WorksGrab continues to lead371.The 2024 GMV estimation by Momentum Works covers only food delivery orde

39、rs placed through Grab,Foodpanda,Gojek,Deliveroo,LINE MAN,Baemin,ShopeeFood,Robinhood.GMV includes all the orders created and sent to restaurant partners,including,cancelled and refunded orders.This estimate does not include food delivery orders not placed with any of the platforms,such as orders pl

40、aced directly with F&B operators.Source:Industry interviews;data sources including POS systems,fleet owners and payment service providers;consumer surveys;Momentum Works estimatesGMV in SEA：$0.1 B$9.4 B$2.7 B$1.8 B$1.5 B$0.2 B$0.1 B$1.3 B Momentum WorksUS$2.4b A special case in the Philippines38US$4

41、.2b Jollibee sales Food delivery platform GMVMomentum Works 2024.All rights reserved.The material contained in this document is the exclusive property of Momentum Works.Any reliance on such material is made at the users own risk.3.Key players and strategies39 Momentum WorksGrab extends leadership wh

42、ile ShopeeFood&LINEMAN had notable growth 40Source:Company earning reports;Momentum Works estimates202020212023Southeast Asia food delivery GMV(US$B)*Momentum Works estimates5.97.69.42.53.42.7221.81.30.90.38.83.120.920220.61.5 Momentum Works Momentum Works41“In 2023,every platform achieved some sort

43、 of profitability according to their own definition.”-An industry veteran 41 Momentum WorksMajor players have made significant improvements in profitability42Apples to Apples:Benchmarking major tech platforms report by MWStages of overall profitability“Expected by Q4 2023”123Positive net incomePosit

44、ive free cash flowAdjusted EBITDA breakeven Momentum WorksFood delivery presence ID,PH,VN,TH,MY,SG,MM,KH Southeast Asia-focusedPH,TH,MY,SG,LA,MM,KH Global(SEA,MENA,EU&LATAM)ID,VNPrimarily in Indonesia ID,VN,TH,MYSoutheast Asia-focusedTHThailand-focusedWhat happened in 2023Achieved positive group adj

45、usted EBITDA in Q3 2023Deprioritised periphery businesses1 to focus on the core;extended customer base through dine-in and user segmentation(e.g.(saver programme);made significant progress in advertisingDelivery Hero achieved positive group adjusted EBITDA in H1 2023Trying to divest Foodpanda in SEA

46、;South Korean subsidiary Baemin exited Vietnam marketBalancing user base expansion with monetisation:pushed advertising,lowered AOV,raised take rate Push for affordable“economical mode”,and“sometimes aggressive in subsidies”Integrated ShopeeFood within Shopee(e.g.budget&promotions allocation);expans

47、ion into lower tier cities in VN Put stronger focus on defending against TikTok Shop in its core ecommerce businessAcquired POS startup FoodStoryAcquired majority stake in Rabbit Line PayAggressively grew market share in Thailand,mostly at the expense of Foodpanda What they said they were focusing o

48、n(2023)“Generate sustainable adjusted EBITDA;achieve next milestone of positive free cash flow”“(In balancing growth and profitability,)our most important metric is cashflow”“Increase targetmarket,improve monetisation and strengthen synergies”“Expanding low-cost selection.while streamlining operatio

49、ns”“Prioritise investing in the business to increase market share and strengthen market leadership(in ecommerce)”Targets to IPO as early as 2025,starting in The Stock Exchange of Thailand(SET)and eventually dual listing in the US 43Key players strategic focus:balancing growth and profitability Paren

50、t Parent1.Kitchen,dark stores,quick commerce Source:Industry interviews;Momentum Works insights Parent Momentum Works Momentum Works44Leadership,people,organization,product,in which order?44 Momentum Works Niklas stberg CEO,DeliveryHero(2011-now)45What leaders of key food delivery players said in 20

51、23Anthony TanCEO,Grab(2012-now)Patrick WalujoCEO,GoTo Group(2013-now)Yod ChinsupakulFounder,Wongnai(2010-now)CEO,Line Man Wongnai(2020-now)Forrest LiCEO,SEA(2009-now)GoTo now sits on a much stronger foundation and we expect this partnership to bring many benefits not just for e-commerce,but for our

52、on-demand services and fintech businesses as well(New joiners)might not have had the chance to experience our full fighting mode yet ask our veterans for their war stories This(frugality and efficiency),combined with our inborn fighting spirit and deep understanding of our markets,make us a formidab

53、le opponent for any competitorWe want to use our strength of over 10 million LINE MAN and Wongnai users,over 500,000 merchants,and over 100,000 riders to create a coherent transaction experience for all stakeholders.With the addition of RLP,we believe LINE MAN Wongnai is uniquely positioned to help

54、digitalize the Thai economy We need to become even more lean,efficient-and above all else-a high performing organisation.This will require us to be more demanding and selective in how we structure ourselves moving forward-by carefully choosing the right roles,team sizes,and org design in each areaWe

55、 still have a long way to go in achieving our mission.There is so much more we can do to serve beyond one in 20 Southeast Asians In order to achieve this we have to provide our consumers with more affordable services while enabling our driver merchant partners to earn more-Grab Q3 2023 earnings call

56、-Statement after announcing Tiktok Shop Indonesia and Tokopedia merger-Letter to employees announcing Q1 layoffs-Statement announcing acquisition of Rabbit LINE Pay-Letter to employees in September announcing“full fighting mode”Source:Earning calls,Momentum Works insightsMomentum Works 2024.All righ

57、ts reserved.The material contained in this document is the exclusive property of Momentum Works.Any reliance on such material is made at the users own risk.465.Where to find growth?46 Momentum Works47Where to find growth amid flat topline Expand user base AdvertisingOperational optimisation 123 Mome

58、ntum Works481.Expansion of user base:penetrationSource:Annual reports;industry practitioners interviews;Momentum Works insightsMonthly active users5%95%Untapped population in SEAUntapped urban population Southeast Asia population is still largely untapped by food delivery Momentum Works491.Expansion

59、 of user base:where to find them?Source:Annual reports;industry practitioners interviews;Momentum Works insightsIn major citiesExpansion into smaller citiesTouristsWhere to find them?Cari dari mana?Tm h u?Poll:Which one do you think has the biggest potential?Momentum Works501.Expansion of user base:

60、segmented offerings to maximise value captureSource:Annual reports;industry practitioners interviews;Momentum Works insightsStandardMassPremiumProvide premium servicesOne standard offeringDifferentiated offeringsNot capturing full valuePriced out$5 delivery feeDeliver in 35 mins$10 delivery feeDeliv

61、er in 20 mins$5 delivery feeDeliver in 35 mins$2 delivery feeDeliver in 50 minsProvide affordable servicesto capture more valueto serve this segment Momentum Works511.Expansion of user base:Grabs attempts on“Saver”Source:Annual reports;industry practitioners interviews;Momentum Works insights Moment

62、um Works522.Advertising is becoming more and more common Momentum Works532.Advertising:cohorts of advertisers Small F&B merchantsBig F&B chainsFinancial services and others1234Ayam GeprekKang JiangganFMCG brands Momentum Works543.Continuous operational optimisation Group ordersUsers in the same offi

63、ce order togetherBatched ordersRiders deliver multiple orders in one tripUnderpinned by various platform algorithms(e.g.dispatching,routing,mapping)Momentum Works Momentum Works553.Will we see this in Southeast Asia?A.Certainly!B.Nah,neverC.In some places sahaja D.How to keep the food warm?55Momentu

64、m Works 2024.All rights reserved.The material contained in this document is the exclusive property of Momentum Works.Any reliance on such material is made at the users own risk.566.What will happen in 2024?Momentum Works Momentum Works57Crystal balling has been a hard sport since Covid57 Momentum Wo

65、rks Momentum Works58Will GoTo focus more on,or divest,Gojek?58 Momentum Works Momentum Works59How will Foodpanda exit?59 Momentum Works Momentum Works60Will TikTok be a potential disruptor?Lidong ZhangShou Zi ChewYiming Zhang60 Momentum Works Momentum Works61We asked ChatGPT to draw an image“Will Ti

66、kTok be a threat to food delivery platforms in Southeast Asia?”61 Momentum Works62Rider fashion of mix&match acceleratesThese photos are taken by Momentum Works team on the ground while researching for this report62 Momentum WorksJoin the Momentum Works immersions!Register63Q3 2023Q4 202319-21 March

67、 2024Digital Leadership Immersion Ecommerce ecosystem Business Immersion RegisterQ2 2024 Momentum Works64This curated,focused immersion programme will include visits to the most relevant companies in Chinas live commerce ecosystem,real experiences in live commerce and retail operations,and networkin

68、g with decision makers.The key takeaways are:An understanding about the live commerce ecosystem and industry trends;An appreciation(and learning)of operational strategies,execution and new supporting technologies;Networking with decision makers&potential partners.Daily briefings and debriefings led

69、by Jianggan Li,CEO of Momentum Works to link all the experiences and exposure to your home region and organisation.Join Momentum Works Live Commerce Immersion to China in March 2024Find out more64 Momentum Works Momentum Works65The question you wanted us to addressA.Temu opening up to US sellers B.L

70、azadas layoffsC.Shopee vs TikTok ShopD.Chinas demographics65Extra time Momentum Works66The Impulso PodcastWeekly commentary on latest events,and in-depth commentaries on trending topicsSubscribe to our newsletter:(click or scan the QR below)thelowdown.momentum.asia Stay up to date with the most curr

71、ent perspectives from Momentum WorksTheLowDown blogCandid,unfiltered perspectives from our team and our community 66 Momentum Works67“Seeing the unseen-behind Chinese tech giants global venturing”analyses experiences,learnt by Chinese&Chinese inspired tech companies and bring this back to your organ

72、isation.This book connects the unique experiences of Chinese entrepreneurs from different generations and brings to life real insights and practical lessons for explorers,investors and other stakeholders.The book vividly illustrates the distinct strategies,practices and leadership styles behind thei

73、r global success.It is thought-provoking and is filled with insightful lessons and interesting examples.The book is a must-read.-W.Chan Kim,The BCG Chair Professor,INSEAD;co-director,INSEAD Blue Ocean Strategy Institute;worlds#1 management thinker,Thinkers 50-Eddie Wu,Chairman,Vision Plus Capital;co-founder,Alibaba GroupGet your copy from:and major bookstores in your countryRead our latest book on people,organisation and leadership67 Momentum WorksExperienceInsightsInsights|Community|ExperienceInform,Connect and Enable tech and new economy in emerging marketsVentureshellomworks.asia Community