The Price of Market Dominance: A Deep Dive into Foodpanda Bangladesh
Published on: June 25, 2025
The Price of Market Dominance
A detailed, data-driven analysis of Foodpanda Bangladesh's aggressive market capture strategy and the challenges on its path to profitability.
67%
Food Delivery Market Share
~1,013 Cr
Total Loss (until 2023)
The Parade of Departing Competitors
In the face of Foodpanda's aggressive strategy, many major competitors have left the market one by one.
2020
Uber Eats' Departure
Reason: The globally recognized Uber shut down its food delivery business in Bangladesh after failing to secure a top position amidst intense competition.
2023
Shohoz Food's Departure
Reason: The local company Shohoz was forced to close its food delivery business as it could not afford the massive spending required to stay competitive.
2023
HungryNaki's Departure
Reason: Bangladesh's first food delivery platform, HungryNaki, was shut down by its parent company Daraz (Alibaba), primarily due to intense competition from Foodpanda.
Financial Analysis: The Game of Profit and Loss
Loss vs. Business Growth
For a time, Foodpanda focused solely on business growth, resulting in significant losses. However, their losses decreased substantially in 2023, indicating a new focus on profitability.
Reasons for Loss
A large portion of their total losses went towards subsidies and advertising for their core food delivery business.
Workers Under Pressure
This push for profitability is creating many problems. The pressure to increase profits is falling on restaurant partners and riders, giving rise to conflict.
Fairwork Bangladesh Scorecard (2021)
This chart shows that Foodpanda failed in the areas of fair pay, fair conditions, proper management, or worker representation.
Root Causes of the Problems
🍽️ Restaurant Partners
- High Commissions: Commissions of up to 30% are reducing restaurant profits.
- Unfair Contracts: Allegations of preventing partners from using other platforms.
- Arbitrary Changes: Allegations of suddenly reducing delivery areas, causing sales losses.
🛵 Delivery Riders
- Uncertain Pay: Reductions in per-delivery pay led to strikes.
- Lack of Protection: As contractors, riders do not receive minimum wage or insurance.
- Unfair Management: Allegations of account deactivation without clear reasons.
References
- Delivery Hero SE, Annual Reports (2020-2023): For financial data on revenue and losses.
- Fairwork Bangladesh Ratings 2021: Labour Standards in the Gig Economy: For information on worker conditions.
- The Daily Star & The Business Standard: For news on competitor exits (HungryNaki, Shohoz Food).
- TechCrunch & Reuters: For international context and news on Uber Eats' market exit.
The Path Forward
Foodpanda's future depends on its ability to manage opportunities and risks. To succeed, they must balance business growth, profitability, and maintaining a fair environment for all. While reducing subsidies and increasing commissions may lead to profitability, dissatisfaction among customers and partners could become a major obstacle to their long-term success.
Written by
Sajid Hasan
Sajid is a writer and analyst focusing on market dynamics and strategic business movements in South Asia.