Sources suggest Lineman close to buying up Food Panda

[webfact]

Sanook Thai Caption: Talks over deal

 

Sanook followed a Bloomberg report that suggested Lineman were in talks to buy the Food Panda delivery service owned by Delivery Hero.

 

The initial asking price was US $100 million though this was expected to come down due to the depressed delivery sector market.

 

At present in Thailand the hierarchy is:

 

Grab #1
Lineman #2
Food Panda #3

 

All three lost a lot of money last year but especially Lineman and Food Panda that was in the billions of baht. 

 

Buying Food Panda out could lead to a strategy to take on market leader Grab who only leaked 325 million baht last year on their taxi service. 

 

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[CelticBhoy]

All three here have lost a ton of money in the past year, but "someone" reckons a huge takeover bid is on the horizon?

Let's see them pitch that one on Dragon's Den!  ????

[RandolphGB]

Grab and Food Panda don't make money. Never will.

 

There's a reason why they are willing to make losses of hundreds of millions of dollars every year. 

 

[hotchilli]

15 hours ago, RandolphGB said:

Grab and Food Panda don't make money. Never will

I've never used them, perhaps it's my fault.

[herfiehandbag]

Certainly seem to be a lot less suicidal maniacs with pink food boxes, and a lot more with a green and white cartoon character on them!

 

I am surprised that they lose a lot of money - there is not exactly a lot of infrastructure to support.

[herfiehandbag]

17 hours ago, RandolphGB said:

Grab and Food Panda don't make money. Never will.

 

There's a reason why they are willing to make losses of hundreds of millions of dollars every year. 

 

Which is? I am intrigued!

[lujanit]

1 hour ago, herfiehandbag said:

Which is? I am intrigued!

So am I.  How can these companies sustain hundreds of millions of dollars a year?  There must something else going on.

[RandolphGB]

On 12/15/2022 at 10:06 AM, lujanit said:

So am I.  How can these companies sustain hundreds of millions of dollars a year?  There must something else going on.

There’s not a single food delivery or ride hailing app in Asia or the West (Uber, Lyft, Bolt, Deliveroo, Delivery Hero and more that have gone bust) to date that has made a profit.

 

It’s all about getting as many users onboard as quickly possible , collecting data about every aspect of their lives and having the ‘everything app’ that people live through - banking, loans, food, travel, health, medical. These areas are all connected - loans for cars, hospitals. Houses, holidays etc etc . 
 

Grab already provides finance loans  to its riders, with repayments deducted through each day of work they do. The next step is to have credit accounts and bypass banks (not a bad thing) as they are already doing in Singapore.

 

Line already has payment features but their food delivery service is not as popular as Panda or Grab. Collecting their users could mean everything could be done through the Line app. 
 

 

 

 

[lujanit]

^^^ Thanks.  I thought they may be some sort of money laundry schemes.