7 hours Ago
Line Man Wongnai plans to invest 10 billion baht in technology over five years, mainly on artificial intelligence (AI), while it wants to acquire 1-2 tech startups. Yod Chinsupakul, chief executive of Line Man Wongnai, said at the AWS Summit 2025 on Tuesday that the company continues to invest in technology and that the amount should total 10 billion baht over five years, or 2 billion baht a year. The company wants to continue its innovation amid intense market competition, aiming to elevate the customer experience and achieve cost optimisation, he said.
The investment will focus on generative AI (GenAI) to improve customer services and make personalised recommendations, said Mr Yod. Over the past five years, the company has invested 8 billion baht in technology, mainly for a cloud computing system and AI. Line Man Wongnai has more than 100 AI engineers and developers, with 500 technicians working to make the company more adaptive and able to launch new services, he said.
"We use AI to manage customer orders for our drivers and restaurants, and to optimise the cost of delivery," said Mr Yod. With the Amazon Web Services cloud service, the company can support more than 1 million on-demand transactions daily. He said the online food delivery segment will become a duopoly with an eased price war within a year, shifting to competition over quality once Foodpanda exits the market next month.
Line Man Wongnai is not interested in buying Foodpanda, said Mr Yod. He said if Yip In Tsoi, which operates the Robinhood app, acquires Foodpanda then this would not create a significant impact as both are small players. Last week Delivery Hero, the world's leading delivery platform, announced that Foodpanda, its Asia-based business, will stop operating its food and grocery delivery services in Thailand on May 23.
A Yip In Tsoi source who requested anonymity said the company is interested in acquiring the Foodpanda app and is evaluating its business potential. According to Singapore-based research firm Momentum Works, Thailand's food delivery market in 2024 tallied US$4.2 billion, with Grab claiming a market share of 46%, Line Man Wongnai 40%, ShopeeFood 7%, Foodpanda 5%, and Robinhood 2%.
Mr Yod said the price of online food delivery services has not spiked, despite fewer players. He said Line Man Wongnai plans to acquire 1-2 startups this year. Moreover, its merchant solutions expand the customer base beyond restaurants to tap retail, services and cosmetic segments, said Mr Yod.
The company should break even this year and wants to launch an initial public offering in 2026, he said. Line Man Wongnai's online food delivery business generates 80% of its total revenue and has a 44% market share. Its LinePay service has high growth potential, while its ride-hailing business aims to become profitable within 12 months, said Mr Yod.
He said the fintech market is valued at 2 trillion baht, or 10 times the food delivery market. The company aims to become a key player or the next unicorn in fintech within 5-7 years, Mr Yod said. The company plans to develop a "buy now, pay later" service in the near future, he said.
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