Delivery Hero retreats as Asian rivals gain ground

Meituan, Grab and Coupang are reshaping East Asia's delivery market.

Delivery Hero's acquisition-led strategy is unravelling across East Asia, creating opportunities for regional rivals as ownership of major food delivery platforms shifts, according to a report by Momentum Works.

According to its Food Delivery Platforms in East Asia 2026 report, the region's four largest food delivery markets. South Korea, Japan, Taiwan and Hong Kong generated an estimated $38.6b in gross merchandise value in 2025. South Korea accounted for $28.3b, followed by Japan at $4.1b, Taiwan at $3.6b and Hong Kong at $2.6b.

Delivery Hero, once the dominant operator across Hong Kong, Taiwan and South Korea, is dismantling much of its regional footprint. Foodpanda Taiwan is being sold to Grab, Baemin is on the market, foodpanda has lost its leadership position in Hong Kong, and the company has exited Japan.

Momentum Works said operators such as Meituan, Coupang and Grab are replacing Delivery Hero, having built their businesses through sustained competition in their home markets rather than acquisitions.

"The acquisition-led playbook that once made Delivery Hero dominant in Asia is now being challenged by operators built through competition rather than consolidation," the report said.

Momentum Works CEO Jianggan Li said East Asia demonstrates that market maturity alone does not determine food delivery success. Despite similar levels of urbanisation, income and foodservice development, penetration ranges from around 3% in Japan to more than 20% in South Korea.

"People often assume food delivery success is determined by how developed a market is. East Asia shows that isn't true," Li said. "Market readiness is only the precondition. Markets don't grow by themselves — operators' relentless push grows markets."

The report highlighted how competitive intensity has shaped each market. In Hong Kong, Meituan's Keeta became profitable and overtook foodpanda within 29 months by focusing on one-person meals and operational efficiency.

Taiwan's market has stalled at around 10% penetration, but Momentum Works said Grab's experience in Southeast Asia could help restore double-digit growth following its acquisition of foodpanda Taiwan.

In South Korea, Baemin remains the market leader, whilst Coupang Eats continues to gain share through the wider Coupang ecosystem. Japan remains the region's least penetrated market at around 3%, with convenience stores and a strong solo-dining culture limiting demand for delivery.

Li said new ownership alone would not change the competitive landscape.

"Ownership changes the balance sheet. It doesn't change the competitive dynamics," Li said. "Whoever owns these assets will still have to compete against operators that have spent years learning how to win in highly competitive markets."