Food delivery startup Foodpanda has announced that it is closing down its operations in Indonesia. The company accepted its last order yesterday, October 3, by 10PM local time.
“Foodpanda will cease all food ordering activities in Indonesia on a permanent basis. In particular, the company will close its website and mobile application in Indonesia, and terminate cooperation with all restaurant partners,” said Foodpanda management team, in a statement obtained by DEALSTREETASIA.
The announcement came after circulating reports that Foodpanda was selling its Indonesian business for less than $1 million.
The Rocket Internet-backed firm entered Indonesia in 2012, and had partnered with thousands of restaurants in the country. It has now exited because of competition with the app-based ridehailing services that also offer food delivery, such as Go-Jek and Grab Bike.
Foodpanda CEO Ralf Wenzel said Indonesia has not “generated the same momentum”, and will concentrate its operations in core markets such as Singapore, Hong Kong, Malaysia, Taiwan and Thailand. Last year, Foodpanda had closed down operations in Vietnam.
“Over the last couple of months foodpanda in Asia has further enhanced its consumer proposition and now focuses on offering the fastest proprietary delivery for well curated high quality restaurant options at affordable pricing,” Wenzel said.
“We will continue to invest into our Asian businesses and are very happy about the past results,” he added.
Foodpanda claimed that it had become profitable in the Middle East after agreeing to a deal to merge its Hellofood business in Saudi Arabia with Saudi delivery firm Hungerstation.
The combined operation will serve 1 million active customers and 2,000 restaurants across 30 cities in the largest Gulf state. It also runs food delivery services in Egypt as Otlob and in the United Arab Emirates as 24h.ae.