According to India-based Redseer Strategy Consultants, the combined gross merchandise value (GMV) of Thailand’s online food delivery and ride-hailing services reached US$5 billion in the first half of 2024.
Both sectors are projected to experience double-digit growth from 2023 to 2028, fueled by strong demand from digital consumers and an increasing number of drivers.
In the first half of 2024, Line Man led the market with a 44% share of transactions, followed closely by Grab with 40%, ShopeeFood with 10%, and other players like Foodpanda and Robinhood accounting for 6%, as reported by Roshan Behera, a partner at Redseer Strategy Consultants specializing in Southeast Asia.
The growth in the food delivery sector is largely driven by user demand, which is being supported by urbanization, changing lifestyles, and the desire for healthy food and multi-cuisine options that can be delivered quickly and conveniently.
Mr. Behera also noted that the highly fragmented food and beverage (F&B) market in Thailand makes services from food delivery companies essential.
As of 2023, Thailand has one of the highest ratios of delivery drivers to food stalls, with 52% of all F&B outlets—including street stalls and kiosks—utilizing delivery services, trailing only behind Singapore at 78%.
The competitive landscape in Thailand’s food delivery sector has evolved rapidly, with the two leading players frequently switching positions regarding market share. Meanwhile, ShopeeFood is gaining traction by tapping into its horizontal platform capabilities and existing user base.
The food delivery market in Thailand is expected to grow significantly, with the GMV projected to rise from $4.2 billion in 2023 to $7.1 billion by 2028, achieving a compound annual growth rate of 11% due to larger order sizes and an increasing number of daily orders.
The ride-hailing market in Thailand is also set to double over the next five years, with the GMV estimated to grow from $600 million in 2023 to $1 billion by 2028.
Key players in the ride-hailing sector include Grab, Line Man, Bolt, inDrive, and Maxim. The market’s growth is driven by factors such as a resurgence in tourism, increased availability of vehicles and drivers, changes in consumer behavior, and other strong supply and demand factors.
The top three companies in this market are expected to hold over 85% of the market share.