Food outlets unfazed by Deliveroo exit, but delivery riders fear less competition
Food delivery riders are voicing concerns over reduced competition due to Deliveroo's impending exit, while most F&B businesses say the impact will be minimal due to low order volumes from the platform.
A Deliveroo delivery rider. (File photo: Reuters/Toby Melville)
SINGAPORE: While delivery riders expressed concerns about a potential monopoly, food and beverage businesses were largely unconcerned about news that Deliveroo will exit Singapore's market.
F&B outlets said orders from the food delivery platform were negligible, adding that they would turn to the remaining two competitors, Grab and Foodpanda, to fulfil online orders instead.
It was mostly the same story for riders, many of whom had already turned to other platforms due to declining orders from Deliveroo.
The company announced on Wednesday (Feb 25) that its last day of service would be on Mar 4, and that it would begin "an orderly wind-down process".
Delivery rider Alvin Lim expressed surprise at the latest development, given the recent acquisition by DoorDash.
Mr Lim, 34, said he actively used Deliveroo even though it had the lowest number of orders among the three platforms. The platform accounts for only 10 per cent of his earnings, but offered the most flexibility as riders could choose to accept or decline orders without facing penalties, he said.
"This flexibility is a major advantage, but I believe it also comes with drawbacks. Orders that are further away are often rejected by riders, which forces Deliveroo to increase the payout to attract someone to take them.
"Additionally, when riders are unwilling to accept certain orders, Deliveroo may need to compensate customers for late deliveries."
Other riders, such as Mr Pham Quoc Tin, 38, were unsurprised by the move.
Mr Tin, who was wearing a Deliveroo jacket when he spoke to CNA, said he had decided to help the platform with deliveries on Wednesday upon hearing of its impending closure.
He had been expecting the platform to close since last year due to a lack of riders and orders.
The part-time delivery rider said he began delivering for the platform in 2023 but stopped a year later due to infrequent orders, which mostly came during peak hours.
It was a similar story for Mr Raden Yahya, 32, who only used the platform sporadically after starting food delivery in 2017.
"When I see the fare, S$3.99 (US$3.15) I straightaway turn it off and go to other platforms," Mr Raden said.
"I used to be with them before COVID-19 ... the fare (was) getting lower, it could go as low as S$3 per delivery. The demand is not there," he said.
However, both Mr Tin and Mr Raden noted that earnings from Foodpanda were on the decline, with the former noticing a 50 to 60 per cent drop over around seven months.
Mr Lim said: "I'm worried Foodpanda might follow (Deliveroo's fate) if they fail to be profitable in Singapore. Then the only option will be Grab (and) they will monopolise the market."
Echoing his concern, Mr Raden said, "As long as there is still a competitor with other platforms, I don't think it's harmful, but let's say there's only left one then I'll be concerned because they can just charge any amount to the riders."
Another delivery rider of six years, who wanted to be known as Mr Tan, said Deliveroo orders accounted for 50 per cent of his earnings, as he used that service and Grab in equal measure daily.
The 64-year-old rider said he felt shocked when he heard the news. "There goes my money", he said.
He preferred Deliveroo for its flexibility of cancelling orders without penalty, and because it had better rates for him as he was willing to go the distance for deliveries.
Deliveroo said on Wednesday that the decision to exit Singapore was part of a broader review of the company’s international portfolio. It had entered Singapore in November 2015 and was acquired by DoorDash in May 2025.
Delivery riders and businesses were informed of the impending closure via email earlier on Wednesday.
The email stated that Deliveroo had made the "difficult decision" to end operations in Singapore after considering its options.
"This decision was not taken lightly. Our focus has always been on offering great value to customers and partners, and importantly, flexible, competitive opportunities for you, our riders. Over the past 11 years in Singapore, we are proud of what we have achieved together," it added.
"However, following a review of country-specific conditions, the company has concluded that ending operations in Singapore is unfortunately the most appropriate course of action."
Riders were told they could continue delivering orders until 3pm on Mar 4, with fees paid for every delivery accepted and completed until then.
These will be processed on Mar 4, and any outstanding fees and incentives will be paid on Mar 10.
However, riders like Mr Tan said they will stop using Deliveroo way before it ceases operation for fear that payments will be disrupted once the system goes offline.
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F&B OUTLETS UNFAZED
F&B businesses CNA spoke to were unfazed, citing the low number of online orders they received through Deliveroo compared with its competitors. Most told CNA that they would simply switch platforms and asked what the off-boarding process would be like, including what would happen to the Deliveroo devices they had.
A stall assistant at Nasi Lemak Ayam Taliwang, Muhammad Asri, said he usually received two to three orders a month through the Deliveroo terminal, compared to the same amount in a week from the other platforms.
The 49-year-old said the figure was negligible and the stall would simply continue its online services with the remaining two platforms.
Another stall assistant, who wanted to be known as Mr Fang, remained unbothered by the news even though Deliveroo is the only service he currently subscribes to.
The 30-year-old, who runs a herbal soup stall in a hawker centre, said he dropped his subscriptions to the other platforms and kept Deliveroo two to three years ago as its fees were cheaper.
However, he has noticed a drop in average monthly orders via the service from 300 to 200 in the past five months.
Mr Fang said online sales were still a negligible proportion compared to what his stall draws daily - about 900 in-person orders.
He will simply switch to another platform when the time comes, he said.
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