How will delivery fees change in a Grab–Foodpanda duopoly?

Deliveroo struggled to compete in a market driven by scale.

Deliveroo Singapore Pte. Ltd. will exit the market after 11 years, cementing Grab Holdings Ltd.’s dominance in the local food delivery sector.

Deliveroo will keep its platform operational until 4 March to complete its wind-down process.

In a statement, Deliveroo CEO Miki Kuusi said the decision follows a review of “country-specific conditions, and our focus on investing where we see the clearest path to sustainable scale and long-term leadership.”

Industry watchers, however, said the departure was expected. Consultancy firm Momentum Works Pte. Ltd. cited Deliveroo’s decline in market share—from 24% in 2020 to 7% in 2025—and its exit from Hong Kong in April 2025 as indicators that Singapore would likely follow.

Despite its loyal base of premium users and exclusive merchant partnerships, Deliveroo struggled to compete in a market driven by scale.

Momentum Works in an analysis noted that Grab, with its operational density and leverage, is well placed to absorb the demand left by Deliveroo.

DBS Group Research in a February report estimated that Deliveroo’s 7% market share now presents an opportunity for Grab to consolidate its already commanding 69% market share in Singapore.

Grab has been pushing affordable offerings, including Shared Saver, which uses artificial intelligence to batch orders for users nearby, and GrabFood for One, targeting solo diners by removing small order fees and cutting delivery costs.

Delivery Hero (Singapore) Pte. Ltd., which operates Foodpanda, holds a 24% share. DBS questioned its potential profitability in the long term. Foodpanda has launched its Make Life Delicious campaign, aiming to shift from a delivery-only app to a broader “everyday lifestyle partner.”

Questions to ponder:

1. How are delivery platforms balancing aggressive growth with long-term profitability, and which business models appear most sustainable? 
2. How is competition from grocery delivery and cloud kitchens reshaping the traditional food delivery landscape?