Robinhood was a Thai food delivery platform launched by Siam Commercial Bank (SCB) in October 2020. It was developed as a corporate social responsibility (CSR) initiative to support small businesses and consumers during the COVID-19 pandemic. The platform distinguished itself by not charging gross profit (GP) fees to restaurants, allowing them to retain the full amount of their sales
Key Features and Services
- No Commission Fees: Unlike other food delivery services that charged commissions of around 30%, Robinhood did not impose any fees on restaurants, enabling them to receive the total revenue from their sales.
- Prompt Payment: The platform ensured that restaurants received payments within one hour after completing an order, enhancing cash flow and operational efficiency.
- Support for Small Businesses: Robinhood aimed to assist small and medium-sized enterprises (SMEs) by providing a cost-effective platform to reach customers, especially during the economic challenges posed by the pandemic.
- Expansion into Super App Services: Beyond food delivery, Robinhood expanded its services to include ride-hailing, shopping, express delivery, and travel deals, positioning itself as Thailand’s first super app.
Growth and Market Position
Within 20 months of its launch, Robinhood achieved significant milestones:
- Merchant and User Base: The platform had over 225,000 listed stores, more than 2.8 million registered users, and over 30,000 food delivery riders.
- Market Share: It secured a 21% market share in the Greater Bangkok area, becoming the second most popular food delivery service in that region.
Challenges and Closure
Despite its rapid growth and popularity, Robinhood faced financial challenges:
- Financial Losses: In 2023, the platform reported revenue of 724 million baht but incurred a loss of 2.1 billion baht, up from a 1.9 billion baht loss the previous year.
- Operational Cessation: Due to sustained financial losses, SCB announced that Robinhood would cease operations on July 31, 2024. The decision was part of a strategic move to optimize capital management and maximize shareholder returns.
Impact and Legacy
Robinhood’s entry into the Thai food delivery market introduced a no-commission model that benefited small businesses and challenged existing players to reconsider their fee structures. Its rapid expansion into a super app demonstrated the potential for integrated digital services in Thailand. However, the financial sustainability of such a model proved challenging, leading to its eventual closure.
For consumers and businesses in Thailand, Robinhood’s journey underscores the importance of balancing social initiatives with financial viability in the competitive tech industry.
