Rocket Internet-backed food delivery startup Foodpanda announced that it is officially closing down its operations in Indonesia, less than three months after it first announced that the company is up for sale in August.
According to a letter signed by Foodpanda Indonesia Managing Director Victor Delannoy, the company is going to accept its last order today, October 3, by 10PM (local time).
“Through this notice, I officially announce Foodpanda’s decision to cease all food ordering activities in Indonesia on a permanent basis,” he wrote.
Also Read: Restaurant guide app OpenRice reportedly shuts down operation in Indonesia
He also stated that the company is going to close its website and mobile app in Indonesia, terminate cooperation with all restaurant partners, and terminate all agreement with all marketing partners.
Prior to Indonesia, Foodpanda had also closed down operations in Vietnam last year. The company cited plans to focus more heavily on Middle East and Eastern European markets, where it claimed to be profitable.
According to a research by DailySocial, Go-Jek’s food delivery service Go-Food had successfully dethroned Foodpanda from its position as the most popular food delivery app in the country.
Foodpanda’s close-range delivery service is believed to be a weakness that made it hard to compete with other services. The strategy limited the options available to users and with competition from Go-Jek, is thought to have turned customers away.
Foodpanda launched in Indonesia in 2012.
In an email to e27, Foodpanda CEO Ralf Wenzel stated that the company will focus more in its core Southeast Asian market such as Singapore, Hong Kong, Malaysia, Taiwan or Thailand where it experiences “a strong appreciation for our new strategy and thus generate exponential growth rates at very positive unit economics.”
“Over the last couple of months, Foodpanda in Asia has further enhanced its consumer proposition and now focuses on offering the fastest proprietary delivery for well curated high quality restaurant options at affordable pricing. Foodpanda’s service orientation has equally become the biggest driver of the company’s aim towards overall sustainability,” he explained.
“Indonesia has not generated the same momentum and represents a much smaller opportunity for our adapted proposition. We will continue to invest into our Asian businesses and are very happy about the past results,” he closed.