KUALA LUMPUR – Foodpanda Malaysia continues to project optimism for its 2024 prospects, surpassing break-even revenue expectations – despite the recent fallout of a potential buyout deal.
Interim chief executive officer Pichaya Thongthua affirmed that it is “business as usual” for the company, emphasising unity and direction following extensive engagements with its stakeholders.
She also declined to comment on whether there were other bids in the pipeline regarding a buyout of the Southeast Asia operations from its Germany-based parent company, Delivery Hero.
“We’re definitely (operating the) business as usual, and that is why I would refer to our recent town hall meeting that went on for two hours,” she told reporters during a luncheon in Bangsar this afternoon.
“Every department (in Foodpanda Malaysia) is moving in the same direction.”
On the company’s plans for 2024, Pichaya said the company was “very optimistic” about its strategy moving forward, especially after holding the town hall meeting with Foodpanda Malaysia’s staffers.
“All the teams are in sync, I think the question is all about direction outlook, and all team members are going in the same direction.”
“We broke even before as a whole in terms of our Asia Pacific operations. So now we are looking at how to not dilute our profitability.
Addressing specific initiatives, Thongthua mentioned plans to enhance the company’s performance in the halal sector, particularly through its Bekal programme, which offers halal-certified food delivery services.
Additionally, she revealed intentions to expand the smart rider bag programme, integrating vendor and product advertising to create additional income streams for delivery partners.
Currently boasting a network of 50,000 p-hailing riders nationwide, Pichaya assured that the initial phases of the smart rider bag programme would not impose fees on vendors and delivery partners – at least in its initial phases.
“We’re definitely not going to charge or milk them (but instead) create a win-win situation. So this is almost like an ad (initiative) in general. If we charge them, we’ll need to ensure that it’s the right sustainable ecosystem for all.
“For riders, we are definitely looking at ways to provide fair compensation to them (for the smart rider bags).”
Last week, Delivery Hero SE, the parent company of Foodpanda, officially ended talks on the sale of the business in selected Southeast Asian markets.
CEO Niklas Östberg said that the decision to withdraw from negotiations was made after careful consideration, noting the strength of the Asia Pacific business and the region’s potential for profitable growth.
However, he indicated that Delivery Hero remains open to mergers and acquisitions, excluding any such activities from its financial year guidance for 2024.
Östberg emphasised that any negotiations would only proceed if they “create value for shareholders with high certainty of closing.”
Delivery Hero’s Southeast Asian markets include Singapore, Malaysia, the Philippines, Thailand, Cambodia, Myanmar, and Laos. |
The company refuted earlier media reports that negotiations for the sale of Foodpanda in Southeast Asia had collapsed, clarifying that agreeable terms were not reached. – February 26, 2024