The food delivery app market is entering a rigorous selection phase - Photo: QUANG DINH
The withdrawal of many international businesses is creating opportunities for domestic platforms, while forcing the remaining applications to adjust their business models towards greater sustainability.
Promotions alone are not enough.
With consumers increasingly expecting faster delivery and higher service quality, food delivery platforms are under pressure to innovate their business models.
Thuy Trang from Ho Chi Minh City, who frequently orders food through apps, said that she used to compare 2-3 apps to find the best deals. However, orders were often delayed, drivers combined multiple orders, and sometimes she had to wait 20-30 minutes for delivery.
"When drivers combine orders, by the time it's my turn to receive the food, it's cold and has lost its flavor," Ms. Trang said, adding that this is why she has recently prioritized faster delivery speeds.
A Q1 2025 survey by Rakuten Insight, an online market research platform belonging to the Rakuten Group (Japan), shows that in Hanoi , Ho Chi Minh City, Da Nang, and Can Tho, only 26% of users choose the app because of its low price, while 47% consider delivery time an important factor and 41% highly value the accuracy and professionalism of the drivers.
According to Tuoi Tre newspaper , the food delivery market in recent years has been an extremely heated "battleground," with numerous international companies investing heavily and offering massive promotions to attract customers.
However, the landscape is changing rapidly as many international unicorns withdraw, creating a vacuum for domestic competitors. While GrabFood and ShopeeFood still dominate the market with over 95% market share, a new domestic name, Xanh SM Ngon, part of the VinGroup ecosystem, officially entered the arena in May 2025.
Mr. Nguyen Van Thanh, CEO of GSM, the operator of Green SM, said that as a new participant, the company does not chase trends or offer flashy promotions, but focuses on the sustainability of each order and each experience.
"Consumer trends are also changing, so we've implemented a 'no order merging' policy to ensure that food reaches customers hot and complete, minimizing errors," Mr. Thanh said.
Beamin has withdrawn from the food delivery market, but many other "big players" are still in the race - Photo: TTO
Competitive pressure remains intense.
Along with rapid growth, many of these business models have also revealed shortcomings. One common complaint from restaurants is the high commission rates from food delivery platforms, ranging from 20-30% per order, not to mention advertising fees.
"Selling through apps seems easy, but it's not. For an order of 100,000 VND, the app takes 30%, leaving me with only 70,000 VND. After deducting expenses, the profit margin is very thin," shared Mr. The Dinh, owner of a chain of Central Vietnamese restaurants in Ho Chi Minh City.
According to online food delivery businesses, not only in Vietnam, but the global food delivery market is also undergoing a period of adjustment after the COVID-19 pandemic. When demand surged, companies aggressively recruited drivers and launched promotions to gain market share.
In developed markets like the US and South Korea, where consumer behavior has stabilized, food delivery apps are gradually shifting to a subscription model, upgrading technology and services instead of short-term promotions. However, in Vietnam, the habit of "deal hunting" prevents many businesses from abandoning the competition for discounts.
Mr. Nguyen Ngoc Luan, CEO of Meet More, believes that in the coming period, the competition between major platforms such as ShopeeFood, GrabFood, beFood, and Xanh SM Ngon will certainly become even more intense and unpredictable. This is still a phase where all parties are heavily investing to gain a foothold. Everyone wants to win and retain customers at all costs, both literally and figuratively.
Currently, consumers are benefiting the most as apps are almost constantly being forced to offer shipping deals, discount codes, money-saving combos, etc., to retain customers.
This has made the market vibrant, stimulating demand for food delivery services, which are becoming increasingly popular in urban life. Food delivery companies are still willing to sell below cost, sacrificing profit margins to retain customers.
According to Mr. Luan, many people simply think that delivering cheap food is a consumer benefit, but behind it lies a complex business equation. No one dares to say when it will become profitable because the cost of retaining customers is too high.
"Meanwhile, Vietnamese consumers have very flexible mindsets. They install many apps and choose the ones with the best promotions. This makes it difficult for service prices to increase in the short term, forcing apps to balance customer retention and profitability," Mr. Luan commented.
Use technology to attract customers.
According to Momentum Works data, Vietnam's food delivery revenue reached approximately $1.8 billion in 2024, a 26% increase compared to the previous year, and is projected to reach $9 billion by 2030. However, this market is extremely competitive, with only a few major players holding almost the entire market share.
When Vingroup's ecosystem entered the food delivery market, giants like ShopeeFood and GrabFood didn't stand idly by, finding various ways to attract users. ShopeeFood recently launched its "One Person Meal" collection at a uniform price of 39,000 VND, targeting individual customers, especially Gen Z, a group of young people who need quick ordering and quick meals.
This platform also promotes artificial intelligence (AI), increases livestreaming, thereby creating a unique trend of exploring cuisine combined with entertainment. GrabFood also expands Restaurant Vouchers, offers promotions up to 50%, applies AI to personalize experiences, and even develops livestreaming channels for culinary exploration.
Meanwhile, Lalamove, already strong in express delivery, is also expanding its ride-hailing and food delivery services. Bolt, an app from Europe, is rumored to be entering Vietnam in 2025, further intensifying the competition.
Source: https://tuoitre.vn/app-giao-do-an-vao-duong-dua-moi-20250712232231241.htm
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