Robinhood, the renowned food delivery app that emerged as a “hero” during the COVID-19 crisis, is set to officially shut down on July 31, 2024.
SCBX, the Thai financial giant and parent company of Robinhood, has announced the termination of the app’s services,stating that its mission to aid society during the COVID-19 pandemic has been successfully accomplished.
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The closure of Robinhood comes as a shock to many users, particularly small and medium-sized restaurant owners who benefited from the platform during challenging times.
According to Manop Seniambut, Chief Financial Officer of SCBX, in a notification to the Stock Exchange of Thailand,this decision aligns with the company’s framework for efficient fund management and sustainable value creation for shareholders.
However, the termination of Robinhood’s services will not impact SCBX’s strategic plan to become a leading financial technology provider in the country.
Robinhood was launched in 2020 during Thailand’s COVID-19 outbreak. Its unique feature of not charging commissions from restaurants led to its rapid popularity and became a crucial income source for numerous restaurant owners.
Despite Robinhood’s success in supporting society, it faced intense competition in the food delivery app market, which may have contributed to the decision to close down.
Impact on Consumers and Businesses
The closure of Robinhood may limit consumer choices for food delivery and could require some restaurants to adapt and find new sales channels.
However, SCBX assures that the termination of Robinhood will not affect other businesses within the group, including Robinhood Shop, Robinhood Rider, and Robinhood Driver, which will continue to operate until July 31, 2024.
The closure of Robinhood marks the end of an era for the “hero” of the COVID-19 crisis. While it’s unfortunate news, it reflects the changing landscape and fierce competition in the current food delivery app market.
The future of this market remains to be seen, as does whether new players will emerge to fill the void left by Robinhood.We’ll have to wait and see.
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