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Is there room for AirAsia to enter the food delivery industry and how can it find leverage as a newcomer among the bigger players?

Angela Teng  |  SG
Published 2021-07-22 12:07:48
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Imagine life without food delivery services at your fingertips — can you live with that? 

Using food delivery apps to solve one’s hunger needs might just be the everyday way of life for many these days, especially for the rising middle-class in Singapore and Southeast Asia (SEA). 

The food delivery industry has boomed over the last year, partly due to the Covid-19 pandemic which accelerated the growth of the food delivery market in the region.

A study by Google and Temasek showed that food delivery has become common for busy professionals and families alike. Such services “spare consumers the inconveniences of humid weather and traffic jams, (and) has become particularly popular in metro areas.”According to an industry report from tech venture research firm Momentum Works, SEA’s food delivery’s total gross merchandise value (GMV) surged 183 per cent from the previous year to reach US$11.9 billion in 2020, providing evidence to reflect this fast-growing industry.

Grab is a major food delivery provider in SEA, and AirAsia is a newcomer to the industry / Image Credit: SoyacincauThere are at least six major players in the region: Grab, foodpanda, Gojek, Deliveroo, LineMan and Now.

 
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