Reassessment Of FoodPanda In Southeast Asia- Up For Sale At Less Than $1mn
What does the company have in mind?
After multiple unsuccessful attempts at selling its India business for $10-15mn, food delivery startup FoodPanda has reportedly put its Indonesia business for sale at less than $1mn.
Why the Drastic Prices drop?
Although Indonesia is Southeast Asia’s largest economy, market challenges were greatly hindering FoodPanda’s success. Stringent competition and negative local market conditions were among some of the factors that FoodPanda could not overcome in order to create a sufficient customer base for its services. As a result, the company decided to sell its business with the price drastically reduced after a long ineffective year.
FoodPanda has also planned to evaluate its presence in the rest of Southeast Asia in an attempt towards becoming an even more profitable enterprise.
From the CEO’s Point of View
According to a press release, FoodPanda co-founder, and CEO Ralf Wenzel claimed that the company is profitable in two of its markets — Europe and the Middle East — but not Asia. The food-delivery startup is now focusing on the improvement of market share in Asia. Also, it believes that in coming times it will manage to improve its business in the first Southeast Asian countries.
FoodPanda offers customers to find freedom of choice from thousands of restaurants and cuisines. Will the company prosper after its stringent reassessment? Please share your thoughts in the comments section below.
Subscribe with us to get your dose of interesting news, research & opinions in the startup segment. Fill the form below: