Southeast Asia’s food-delivery battle heats up as a new dark horse jumps to No. 2.

(Singapore, Jan 28)
Southeast Asia’s food delivery market continues to expand, but the competitive landscape has clearly shifted. Shopee’s ShopeeFood overtook Foodpanda in 2025 to become the region’s second-largest player, while difficulties surrounding Grab’s proposed acquisition of GoTo suggest another wave of consolidation may be approaching.

According to a new report released Wednesday by Momentum Works, Southeast Asia’s food delivery GMV rose to US$22.7 billion last year, up 18% year-on-year, with growth exceeding 10% in each of the past two years—signaling a clear recovery from the post-pandemic slowdown.

Grab holds the lead; ShopeeFood surges

Grab remains the market leader, with its share of regional GMV expected to reach 55% in 2025, up from 53.8% in 2024. In Malaysia, the Philippines, and Singapore, Grab commands roughly two-thirds of the market.

ShopeeFood, however, has emerged as the standout challenger. After surpassing Gojek in 2024, it overtook Foodpanda in 2025, lifting its market share to 14.54%. Momentum Works said ShopeeFood’s growth has been driven by competitive pricing and its integration with Shopee’s “quick commerce” model, leveraging livestreams and vouchers to reshape how users discover food options.

Quick commerce—often described as last-mile delivery—allows platforms to deliver non-food items alongside meals. The report noted that Shopee’s push into quick commerce also helps counter rising competition from TikTok’s e-commerce initiatives. Shopee typically builds scale in mass markets such as Vietnam and Thailand before moving into more competitive premium markets like Singapore.

Indonesia largest; Thailand fastest-growing

Indonesia remains the region’s largest food delivery market at US$6.4 billion, accounting for nearly one-third of the total. Thailand was the fastest-growing market last year, expanding 22%, while Singapore’s market grew 13% in 2025 to US$2.9 billion.

Momentum Works said platforms have ramped up discounts and subscriptions in 2025 to attract new, price-sensitive users. While this has supported GMV growth, heavier promotions have weighed on average order values, suggesting platforms will continue spending to defend market share.

Consolidation likely ahead

Looking ahead, the industry appears set for consolidation, with some platforms potentially exiting or undergoing leadership changes. Despite regulatory and political hurdles—most notably in the Grab-GoTo case—the strategic logic for consolidation remains intact.

Momentum Works concluded that competition is increasingly tilting toward fewer but stronger players, with success hinging on cost discipline, operational efficiency, and regulatory coordination rather than unchecked expansion.