Rocket Internet-backed Foodpanda to exit Vietnamese market

Rocket Internet-backed food ordering platform Foodpanda announced that it will be aborting its operation in the Vietnamese market on Wednesday, after over three years of being in the food ordering service sector, in the country.

“Through this notice, we would like to inform you that our company will terminate the business in Vietnam due to the difficulties in financial situation,” Foodpanda said in a letter to its Vietnam-based partners.

DEALSTREETASIA reached out to Foodpanda through three phone numbers available at Vietnamese corporate information pages, but they turned out to be non-existent.

Meanwhile, experts have pointed out that Foodpanda’s business model is not relevant to the Vietnamese market, where people, especially the young, prefer to eat out. New restaurants, which have mushroomed all over the country, have their own delivery services.

A lot of people in the Vietnamese startup community also assert that Foodpanda has not done well with its communication strategy.

Another reason for the failure of Foodpanda Vietnam might be the lack of organised logistics sector, which is just beginning to take shape, and could not have provided a good base Foodpanda’s model

In addition, according to some industry insiders, another mistake that Foodpanda made was in recruitment. It expanded its team too fast, making operational mistakes, which were exposed as the money ran out.

The failure of Foodpanda Vietnam is concluded to be not because of a lack of funding, but due to the improper spending of money.

Although ordering food is not part of Vietnamese lifestyle, other players like Vietnammm or Deliverynow are still in active mode.

These two are also backed by bigger international groups. Netherlands food ordering company Takeaway, which has $117.66 million in funding, poured an undisclosed investment in Vietnammm in 2013.

Meanwhile, Deliverynow has been developed by gourmet media company Foody Corporation. The CyberAgent Ventures Vietnamese investee has recently raised undisclosed series C round from US-based venture capital firm Tiger Global Management.

Also read:

Vietnam’s Foody grabs Series C funding from Tiger Global, to expand to Indonesia

Foodpanda looking to sell Indian arm amidst growing competition?

Foodpanda raises $100m more led by Goldman Sachs, takes total amount raised to over $310m

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.