Robinhood and Foodpanda eye tie-up

Yip In Tsoi proposes collaboration, rather than acquisition, to keep Foodpanda from closing

Yip In Tsoi, the operator of the food delivery platform Robinhood, is in discussions with Delivery Hero, the parent of Foodpanda, over potential collaboration models, though not for an acquisition.

The century-old trading company also wants to list Robinhood on the stock market within three years, as it hopes to break even this year.

Morakot Yipintsoi, president and chief executive of Yip In Tsoi & Co Ltd, told the Bangkok Post the talks are not about acquiring Foodpanda due to Yip In Tsoi’s limited financial resources.

One possible model involves Foodpanda handing over its business to Yip In Tsoi, which would help it operate and share the app’s revenue with Delivery Hero.

Yip In Tsoi has extensive experience working with a partner from Germany. For Foodpanda, which is owned by a German company, Yip In Tsoi would manage their ecosystem with the utmost care, ensuring the business is passed into capable hands, said Mrs Morakot.

Robinhood would also develop an English-language version of the app by mid-May to facilitate foreigners and expats in Thailand using it, she said.

Delivery Hero, the multinational delivery platform, recently announced that Foodpanda would stop operating its food and grocery delivery services in Thailand on May 23, after running up 13 billion baht in losses.

According to the Singapore-based research firm Momentum Works, Thailand’s food delivery market in 2024 was worth $4.2 billion, with Grab claiming a share of 46%, Line Man Wongnai 40%, ShopeeFood 7%, Foodpanda 5% and Robinhood 2%.

Mrs Morakot said Yip In Tsoi urged Delivery Hero to postpone the closing date for three months, allowing more time to hand over the business.

She said the company held an online discussion with the Germany-based executive team and requested a deeper exploration of Foodpanda’s businesses, including the experience of customers on its app.

“We believe small online food delivery players should join forces to strengthen their businesses, creating a win-win situation and ensuring their survival amid increasing order volumes,” said Mrs Morakot.

“Thailand’s food delivery market can accommodate five to six players, similar to the banking industry. Why should we restrict ourselves to only a few players?”

Collaboration with Foodpanda would enable Robinhood to become a boutique online food delivery app, serving both Thais and foreigners eager for delivery from good restaurants, she said.

Mrs Morakot said Robinhood needs to reposition itself as a boutique service — small, niche and sophisticated — offering an easy-to-understand, charming and straightforward experience, with lower commission fees, while delivering exceptional service with a human touch and a caring community.

“We won’t engage in excessive promotional spending, focusing instead on building a sustainable ecosystem,” she said.

The company’s riders should be satisfied with a fair pay rate and a manageable workload, ensuring they are not rushed by multiple orders, said Mrs Morakot.

App users should receive hot, high-quality meals with excellent service, she said, while restaurant partners will benefit from a lower commission fee of 28%, and small restaurants have the opportunity to enhance their standards.

The target customers for Robinhood will not necessarily be those seeking promotions, said Mrs Morakot. In the aftermath of the earthquake on March 28, the company received thousands of orders to assist the affected areas, demonstrating a strong sense of community care.

Robinhood also offers features where users can make merit offerings on Buddhist days by allowing them to have food delivered to temples.

“In the longer term, Robinhood plans to launch Mart, a platform offering Thai handicraft products to foreign buyers around the world. Yip In Tsoi excels in custom processes, and we can join the Tourism Authority of Thailand’s overseas exhibitions to promote our app to foreigners,” she said.

Robinhood plans to break even this year as the platform is forming more partnerships to expand its customer base.

The company plans to list Robinhood on the stock market within three years. Mrs Morakot said revenue from Robinhood is included in the business-to-consumer segment, which should help Yip In Tsoi achieve 10 billion baht in revenue by 2026, marking its 100th anniversary.