Future of Food Delivery in Singapore: Slower Growth and Rider Shortages Explained

Singapore's food delivery market is experiencing slower growth compared to Southeast Asia, with a 13% expansion in 2025 reaching US$2.9 billion—significantly below the regional average of 18%. This slowdown is driven by structural challenges, particularly a limited pool of delivery riders unique to Singapore.

Market Growth Dynamics

Singapore's growth rate of 13% in 2025 was the second-slowest in Southeast Asia, only ahead of the Philippines at 12%. By contrast, Thailand led the region with 22% growth, driven by affordability initiatives, intensified competition, and government subsidy schemes. Indonesia, Malaysia, and Vietnam each recorded around 18-19% growth.

Despite the slower pace, Singapore's double-digit growth indicates that demand for food delivery remains resilient. However, sustaining this growth will require platforms to improve operational efficiency, as consumers increasingly consider alternatives such as dining out or self-pickup.

Structural Challenges and Rider Shortages

The primary constraint on Singapore's food delivery growth is the limited availability of delivery riders—a structural challenge unique to Singapore compared with larger, more populous neighbours. This shortage directly impacts platforms' ability to expand capacity and meet growing demand.

To address this, industry experts emphasise that technology adoption and operational efficiency will be critical. Platforms must focus on building density and improving logistics to raise growth ceilings without relying solely on expanding the rider workforce.

Market Competition and Consolidation

Grab dominates Singapore's market with 69% share in 2025, up from 65% in 2024. Foodpanda's share declined from 27% to 24%. At the regional level, Grab strengthened its position to 55% market share in 2025, while ShopeeFood surpassed Foodpanda to become the second-largest platform.

Strategic Shift for Restaurants

Rather than relying entirely on delivery platforms, forward-thinking F&B businesses in Singapore are repositioning platforms as customer acquisition tools while building direct ordering channels through QR systems and branded online stores. By shifting 20-30% of orders to direct channels, restaurants can significantly improve profit margins and gain greater control over pricing and customer data.