Food Delivery Market Heats up as Line Man Wongnai Cuts Fees

Why It Matters

The fee reduction sharpens price competition, potentially expanding Line Man’s merchant base and market share while pressuring Grab’s margins, reshaping Thailand’s fast‑growing food‑delivery landscape.

Key Takeaways

• Line Man Wongnai net profit $14.6M in 2025 after $9.6M loss.
• Gross profit fee for Chuay Thai Plus merchants cut to 10%.
• Grab's 2025 net profit fell 75% to $10.2M despite revenue growth.
• Thai food‑delivery GMV grew 21% to $5.1B, fastest in SE Asia.
• Line Man plans 2027 IPO after $10.8M merchant support investment.

Pulse Analysis

Thailand’s food‑delivery sector is entering a new phase of price competition as Line Man Wongnai slashes its gross‑profit fee to 10% for merchants in the government‑backed Chuay Thai Plus program. By undercutting Grab’s 9% rate and offering a temporary discount to early adopters, Line Man aims to attract price‑sensitive restaurants that are wrestling with rising input costs. The fee cut also narrows the gap with other players—Robinhood’s 10.5% and ShopeeFood’s 13%—while still staying well below the market average of up to 30%, positioning Line Man as a cost‑effective partner for small and mid‑size eateries.

Financially, the strategy appears to be paying off. Line Man reported its first net profit in 2025—about $14.6 million—after a $9.6 million loss the previous year, and its gross revenue jumped to roughly $513 million. In contrast, Grab’s profit collapsed by three‑quarters to $10.2 million, even as its revenue grew 19% to $629 million. The divergent results underscore how fee structures and merchant incentives can directly affect bottom lines in a market where GMV surged 21% to $5.1 billion, making Thailand the fastest‑growing delivery market in Southeast Asia.

Beyond immediate pricing tactics, Line Man’s $10.8 million investment in merchant support and its slated 2027 IPO signal a longer‑term play to cement leadership. The company is also lobbying for expanded government subsidies to fund eco‑friendly packaging and point‑of‑sale technology, initiatives that could lower hidden costs for restaurants and drive digital transformation. As the duopoly tightens, these broader ecosystem enhancements may become decisive factors in sustaining growth and defending market share against Grab’s aggressive pricing and ShopeeFood’s rising presence.