Line Man Wongnai is preparing for a worst-case energy crisis by considering delivery surcharges on consumers if fuel prices rise by another 9-10 baht.
The company estimates online food delivery growth could slow to 15%, down from the typical 20% annual expansion, due to the impact of rising fuel prices.
Line Man Wongnai predicts online food delivery to comprise nearly 20% of the 900-billion-baht food and beverage market this year.
Despite the headwinds, the firm aims to outpace market growth, sustain profitability, and is exploring a potential listing in the US or Hong Kong by 2027.
Yod Chinsupakul, chief executive of Line Man Wongnai, said in the first quarter, the company's business performance exceeded expectations.
However, in the second quarter, the war and fuel volatility are causing higher fuel prices.
"We are preparing for a worst-case scenario as the war continues, as we may introduce a delivery surcharge to users if fuel prices rise by 9-10 baht more, given the impact on operations and drivers," Mr Yod said at the "13th Line Man Wongnai Users' Choice Best of 2026" event on Monday.
The company is monitoring food prices and some restaurants have already begun raising them due to higher ingredient costs.
Dine-in traffic has softened as consumers cut back on eating out, he said.
Restaurants heavily reliant on foreign tourists, particularly from the Middle East and parts of Europe, are likely to suffer the most as arrivals from these markets are expected to decline, said Mr Yod.
In contrast, restaurants focused on affordable options and catering to locals are more resilient and better positioned to weather the downturn, he noted.
"Online food delivery is considered more of a necessity, so order volumes have not significantly declined and work from home will help to offset mobility service," said Mr Yod.
The company is allocating 350 million baht for marketing the Users' Choice awards to stimulate demand, up from 300 million last year.
Some 685 restaurants were selected for awards from more than 700,000 listings nationwide, spanning street food to fine dining. Line Man Wongnai also introduced the "Visionary Taste Maker Award" to recognise key figures shaping Thai cuisine.
He said the health-conscious segment has shifted from a trend to lifestyle. Clean food and health beverages grew 20% this year, with salads surpassing 1 million dishes sold in the first quarter.
Meanwhile, 192 restaurants were first-time winners of awards, reflecting the continued rise of new entrepreneurs in the industry.
"The average basket size remains 150-200 baht, unchanged over the past two years due to economic pressures and heavy promotional discounts on the platform," said Mr Yod.
The company clarified that adjustment of the gross profit (GP) service fee on April 1 applies only to a limited group of merchants whose service fee rates were below market standards. It does not affect merchants already paying standard rates.
The service fee (excluding tax) will remain at no more than 30%, in line with industry-accepted standards.
"Reducing the GP is very difficult because it is the primary revenue stream for the company, which supports more than 1,000 employees," he said.
Continued Profitability
Mr Yod said Line Man Wongnai continues to exceed industry growth, driven by higher order frequency and an expanding user base, even as competition with Grab and ShopeeFood intensifies.
He said the company's initial public offering target for 2027 remains unchanged, with any delay depending only on market conditions and valuation.
With revenue of more than 20 billion baht, having already achieved full-year profitability for a second consecutive year last year across all products except payment services, which remain in the investment phase, the company is not under pressure to raise funds for survival, said Mr Yod.
The company is trying to close an ongoing merger and acquisition deal within this year, though it depends on variable factors, he noted.
"We will definitely be launching financial products and services within this year," Mr Yod said.
