ShopeeFood and Grab dominate Vietnam’s food delivery market

DNHN - As 2025 begins, Vietnam’s food delivery market is expected to remain highly concentrated, with only a few platforms dominating the space unless new players enter the fray.

According to a report titled "Food Delivery Platforms in Southeast Asia" by research firm Momentum Works, Vietnam’s online food delivery market is estimated to have expanded from $1.4 billion in 2023 to $1.8 billion in 2024.  

Two giants, ShopeeFood and Grab, currently dominate the market, holding 47% and 48% of the market share, respectively. The remaining sliver of the market is shared by Be (4%) and Gojek (1%), the latter of which exited the market in September 2024.  

Moving into 2025, if no new platforms enter the market, Vietnam’s food delivery industry will continue to consolidate, becoming a "playground" for just three major apps.  

The growth of the food delivery market is driven by three key stakeholders: users, restaurants, and platforms. Vietnamese consumers are increasingly favoring the convenience and promotional offers of ordering prepared meals through apps.  

A 2024 survey by market research firm Q&Me revealed that 30% of respondents ordered food delivery for lunch, slightly lower than those who brought homemade meals (46%) but significantly higher than those who dined out (12%).  

During the recent Lunar New Year holiday, a GrabFood survey found that 19% of respondents chose to order food delivery for their year-end gatherings. Snacking habits also contributed to the platforms’ busy schedules, with the most popular items being milk tea (77%) and desserts/sweets (37%), according to Q&Me.  

Meanwhile, restaurants and eateries are actively joining these platforms to attract customers. As of November 2024, GrabFood reported that its number of partners had increased fivefold since it first launched the service in June 2018.  

Despite being the fastest-growing market in the region, Vietnam’s food delivery market remains the smallest among the six Southeast Asian countries tracked, which include Indonesia, Thailand, the Philippines, Singapore, and Malaysia. Indonesia leads the region with a $5.4 billion market, followed by Vietnam with 18% growth.  

Momentum Works noted that Vietnam and Indonesia were the key drivers behind the recovery of Southeast Asia’s food delivery market last year. Specifically, after two years of sluggish growth at around 5%, the region’s food delivery sector rebounded in 2024 with a 13% year-on-year increase, reaching a total gross merchandise value (GMV) of $19.3 billion.  

In the past year, Grab’s total GMV reached $10.4 billion, far surpassing competitors like FoodPanda ($2.7 billion), ShopeeFood ($2.3 billion), Gojek ($1.9 billion), and Line Man ($1.7 billion).  

The Southeast Asian market also witnessed a reshuffling of GMV rankings among platforms, with ShopeeFood overtaking Gojek to become the third most popular app in the region. However, a potential merger between Grab and Gojek could reshape the competitive landscape this year.  

Notably, TikTok has begun testing local services in Indonesia and Thailand, allowing users to purchase F&B vouchers and other services. Although still in its early stages, TikTok’s entry could disrupt the food delivery market, especially if the platform partners with delivery apps.  

In reality, the F&B market’s growth rate has slowed to 4.6%. However, the penetration of food delivery services continues to deepen, driven by the emergence of new customer segments and innovative strategies from platforms.  

"After years of focusing on profitability, Southeast Asia’s leading food delivery platforms have regained growth momentum to drive the next phase of development," said Jianggan Li, CEO and founder of Momentum Works.  

According to Li, the current trend in the food delivery market is a shift from the "cash-burning" phase to a focus on efficiency. Improving operational efficiency and refining customer acquisition strategies will help platforms adapt to this trend and achieve sustainable growth.  

On the other hand, apps are also striving to optimize costs and maximize the value of each order, primarily through solutions such as improving delivery operations, reducing shipping costs, and segmenting customers into mass-market, standard, and premium groups.

Mai Anh