Vietnammm managing director Jochem Lisser has confirmed the development to DEALSTREETASIA.
The acquisition announcement came as a surprising twist because Foodpanda Vietnam Co Ltd said, in a December 2 letter to its partners, that the Vietnam ops will be terminated due to financial issues, adding that all of the company’s activities will cease within five days.
Meanwhile, buyer Vietnammm will be tapping Foodpanda Vietnam’s resources and client base of 1,000 restaurants.
This deal enables Foodpanda’s Vietnam-based customers and listed restaurants to keep making and receiving orders online, Tech in Asia reported a statement from the German company.
“Foodpanda has always been in the front line of market consolidation in the online food delivery sector by establishing clear number one positions in the vast majority of its countries and by conducting a number of complementary acquisitions in the past. This time, we contribute our business in Vietnam which allows us to focus instead on more attractive core markets and helps Vietnammm to become the strongest local player,” the newswire cited Foodpanda co-founder and CEO Ralf Wenzel.
Lisser, in an email sent to DEALSTREETASIA, was confident that Vietnammm has been leading the local market for nearly five years since its inception.
While Tech in Asia cited Tim Schefenacker, Foodpanda’s global head of communications, that “we saw a smaller and rather long-term opportunity” as the reason for the abortion, Lisser did not share the view that Vietnam is not a delivery market.
DEALSTREETASIA reported earlier some industry insiders’ opinion that food ordering is not a Vietnamese lifestyle habit.
With this deal, the consolidation in the local food delivery space is once again seeing an uptick following last year’s strategic investment in Diadiemanuong.com by Ho Chi Minh City-based Chicilon Media, and investment in the very buyer of Foodpanda Vietnam, Vietnammm, by Netherlands’ Takeaway.com in 2013.
The game is now meant for local players. Other food delivery platforms are also backed by Vietnamese companies. Deliverynow.vn is a unit of food media firm Foody Corporation, while Eat.vn is funded by VC Corp, one of the biggest media companies in the country.