1. SEA online Food Delivery was quick to recover after COVID-19 induced headwinds in early 2020

Impact and recovery of SEA food delivery was varied across each country Indonesia was the worst hit in terms of food-tech recovery due to significantly higher intensity of COVID-19 in the country compared to other ASEAN countries. Recovery for Vietnam was the fastest due to low COVID-19 impact leading to an overall positive consumer sentiment towards food delivery COVID-19 aided food tech adoption for Singapore and Thailand significantly.

SEA Food Delivery Recovery Curve, Quarterly Order Volume

Notes– 1) We have included ID, VN, SG and TH in our analysis for SEA

2. Given the swift market recovery coupled with a significantly improved consumer sentiment new players have also begun to enter the market

SEA food tech was quick to recover from COVID-19 compared to other neighboring regions. As a result of which the region saw new entrants into the market. Players quickly scaled up operations by onboarding merchants and riders through competitive commission and incentives rates.

New players in SEA Food Delivery


3. Indonesia double click: Cloud Kitchens have emerged as the new gateway to food service industry

Focus on Cloud Kitchens is expected to increase across SEA as they offer significantly better economics, compared to the dine-in channel.

By the end of 2021, cloud Kitchens are expected to contribute ~15% share to the overall Indonesian online food delivery GMV

Major cloud kitchens in Indonesia such as Grab, Yummy & Go Jek, Rebel currently operate on “Cloud kitchen as a service model”.
Grab is operating its Grab Kitchen in multiple locations across SEA partnered with Indonesian Cloud Kitchen startup “Yummy Corp”. The partnership aims to expand their existing network of cloud kitchens. The partnership will provide Yummy Corp to cross sell to the wide user base of GrabFood.

Apart from cross selling opportunities the partnership aims to provide platform to culinary entrepreneurs create new F&B concepts, test them on the GrabFood platform, and eventually scale them across its cloud kitchen network

Trends seen in Indonesia are in-line with what has also been seen in India, where food delivery platforms are building own cloud kitchen brands such as “Homely” and “ The Bowl Company” by Swiggy.

Share of Cloud Kitchen in GMV mix, 2019-2021F

EBIDTA Margin- Cloud Kitchen vs Dine-in

Read More What’s Cooking In FoodTech: Part 2 – Cloud Kitchen