Local online food ordering service Vietnammm has purchased the entire Vietnamese operation of German rival Food Panda, which announced a termination of business in the country last week.
Vietnammm has confirmed the takeover in a press release, which did not reveal the value of the contract but said it consolidates the company's leading position and would help raise its Vietnam market share to 90 percent.
On December 2 Food Panda Vietnam said in a letter to its partners that it would abort its three-year operations in Vietnam due to financial issues, and that all of the company’s activities including the website foodpanda.vn would cease within five days.
But the new deal allows Food Panda’s customers in Vietnam and client base of more than 1,000 restaurants to continue making and receiving orders online, Tech in Asia reported, citing a statement from the company, a subsidiary of German-owned Rocket Internet which manages a number of e-commerce brands in Vietnam like Zalora, Lazada and Easy Taxi.
“Food Panda has always been in the frontline of market consolidation in the online food delivery sector by establishing clear number one positions in the vast majority of its countries and by conducting a number of complementary acquisitions in the past,” the news site cited Food Panda co-founder and CEO Ralf Wenzel as saying.
“This time, we contribute our business in Vietnam which allows us to focus instead on more attractive core markets and helps Vietnammm to become the strongest local player.”
Vietnammm managing director Jochem Lisser told local media that his company, which in 2013 received funding from Netherlands' Takeaway.com, has grown more than 300 percent in the past three years.
With Food Panda leaving, the company now has competition only from local players like Deliverynow.vn of food media firm Foody Corporation and Eat.vn of VC Corp, one of the biggest media companies in Vietnam.