The Numbers Behind the Consolidation
Deliveroo ceased Singapore operations in March 2026, leaving Grab and Foodpanda as the dominant platforms in what analysts describe as a near-duopoly. A February 2026 report by Momentum Works showed Singapore’s food delivery sector generated gross merchandise value of $2.9 billion in 2025, with Grab commanding 69% of the market, Foodpanda holding 24%, and Deliveroo accounting for just 7%. That scale gap made Deliveroo’s position structurally unsustainable.
The immediate consequence for restaurants is a shift in negotiating leverage. As Anuran Dhar, practice head for foodservice at GlobalData, told Retail Asia, “Market concentration inevitably shifts the bargaining power in favor of the fewer platforms that remain in the market. Accordingly, we can expect restaurants of all sizes to end up paying a higher cost for delivery.”
Commission Pressure on Mid-Tier and Small Operators
Small and mid-tier restaurants face the greatest exposure. Their margins leave little room to absorb higher commissions, and they lack the brand strength to negotiate preferential terms. Some costs will be passed to consumers through higher menu prices or bundled meals, but price sensitivity limits how much can be absorbed that way. Premium brands, by contrast, may use their scale and customer appeal to secure better placement and terms on the remaining platforms.
Grab’s Counter-Move: Merchant Enablement
Recognising that platform health depends on merchant health, Grab has launched several initiatives to support smaller operators. The “Grab Full House Mission” sponsors $388 onboarding packages for up to 70 new F&B operators, runs precinct-based Dine Out campaigns in Tanjong Pagar, Holland Village, and Jalan Besar, and delivers quarterly GrabAcademy workshops on productivity, menu strategy, and AI tool usage. These are not purely altruistic gestures — they are investments in the supply side of Grab’s marketplace. But they do provide tangible support for operators navigating a higher-commission environment.
Direct Channels as a Strategic Hedge
The duopoly consolidation has accelerated interest in direct ordering channels. Restaurants that build their own digital ordering and loyalty infrastructure reduce platform dependency and retain customer data that platforms otherwise control. The EnterpriseSG-UOB AI and Digital Integration Programme explicitly supports this capability, with funding covering up to 50% of eligible digital and AI solution costs. For entrepreneurs, the calculus is straightforward: platform delivery remains essential for discovery and volume, but direct channels protect margins and build durable customer relationships.
Rider Migration and Service Quality
Roshan Raj Behera, a partner at Redseer Strategy Consultants, noted that rider migration from Deliveroo to the remaining platforms could support service quality through faster deliveries and shorter wait times. If that materialises, it benefits restaurants indirectly through higher customer satisfaction and repeat order rates. But it does not offset the structural shift in commission economics.
The Strategic Response
The Grab-Foodpanda duopoly is not a temporary disruption — it is the new operating environment. Food entrepreneurs should plan for higher delivery costs as a permanent line item, invest in direct customer channels to reduce platform dependency, and treat platform partnerships as distribution infrastructure rather than growth strategy. The operators who thrive will be those who use platforms for reach while building independent relationships with their customers.
