Thailand’s delivery and ride-hailing GMV hits US$5bn in H1 2024

Thailand’s online food delivery and ride-hailing services saw a significant rise in gross merchandise value (GMV) in the first half of 2024, reaching US$5 billion (approximately 168 billion baht), as reported by India-based Redseer Strategy Consultants.

Both sectors are anticipated to maintain double-digit growth from 2023 to 2028, propelled by robust demand among digital consumers and an increasing number of drivers.

LINE MAN led the market in the first half of 2024 with a 44% share of transactions. Following closely was Grab at 40%, ShopeeFood at 10%, and a combined 6% for Foodpanda and Robinhood, stated Roshan Behera, a partner at Redseer Strategy Consultants with a focus on Southeast Asia.

User demand, driven by urbanisation, shifting lifestyles, and the convenience of quick, multi-cuisine delivery options, is fuelling GMV growth in food delivery. The fragmented nature of food and beverage (F&B) outlets in Thailand has made food delivery services essential.

“Thailand has one of the highest proportions of supply drivers for food per food stall at 52% of total F&B outlets, including street stalls and kiosks in 2023, following Singapore at 78%.”

The competitive landscape in Thailand has shifted rapidly, with the top two players frequently changing positions in market share. ShopeeFood is also gaining traction by leveraging its horizontal platform capabilities and extensive user base.

The Thai food delivery market is on an upward trajectory. Its GMV is projected to grow from US$4.2 billion in 2023 to US$7.1 billion by 2028, with a compound average growth rate of 11% from 2023, driven by rising basket sizes and an increasing number of daily orders.

The ride-hailing market in Thailand is expected to double over the next five years. It recorded a GMV of US$600 million in 2023, which is forecasted to reach US$1 billion by 2028.

Key players in the ride-hailing sector include Grab, LINE MAN, Bolt, inDrive, and Maxim. The expansion is supported by the resurgence in tourism, increased vehicle and driver availability, and evolving consumer behaviour, reported Bangkok Post.

“The top three players in the ride-hailing market are projected to control over 85% of the market share.”