Xanh SM cooking up plan to join food-delivery market

Xanh SM cooking up plan to join food-delivery market

Xanh SM, a homegrown player in the ride-hailing sector, is mulling over a strategy to join Vietnam's fast-growing food-delivery market.

Nguyen Van Thanh, global CEO of GSM, said, "Xanh SM brand is researching the food delivery sector in Vietnam, which holds tremendous potential for development. We are currently looking for people with experience in building, operating, and managing food delivery services to explore the possibilities."

According to Momentum Works, Vietnam’s food delivery market saw the highest growth in the region last year, reaching a total gross merchandise value of $1.8 billion, an on-year increase of 26 per cent.

Grab was the market leader last year with a 48 per cent share, while ShopeeFood came close behind with 47 per cent. The remaining share belonged to BeFood (4 per cent) and Gojek (1 per cent). However, Gojeck pulled out of the Vietnamese market last September.

Baemin, the South Korean food delivery firm, also announced its departure from the Vietnamese market in 2023. Its strategic exit was a response to the global economic difficulties and the cut-throat competition in the Vietnamese market.

According to Statista, the food delivery market is projected to generate a revenue of $2.78 billion here this year. It is expected to experience an annual growth rate for the 2025-2029 period of more than 9.6 per cent, resulting in a projected market volume exceeding $4 billion by the end of the decade.

The market is highly competitive, with international and domestic players coming and going, while offering various discounts and promotions to attract customers. Furthermore, demand has seen a shift towards healthier food options with many more healthier food choices being offered, catering to the increasing demand for healthy food among Vietnamese consumers.

VIR