Delivery Hero, one of the Prosus companies, has announced that it would be leaving Germany for the second time and divesting from the Japanese market.
In a pre-Christmas announcement, one of the world’s leading local delivery platform “plans to scale down its German operations, foodpanda Germany, to a Berlin-based hub focused on developing innovative logistics and tech solutions for the delivery industry. In addition, the company announced a timeline for the planned divestiture of its Japanese entity which also operates under the brand foodpanda.”
According to Niklas Östberg, CEO and Co-Founder of Delivery Hero, “Scaling down our operations in Germany and planning to divest our Japanese business have not been easy decisions. Facing a very different reality now than we did entering these markets, it is with a heavy heart that we need to pursue other growth opportunities with larger potential. Despite having built up two fantastic foodpanda teams showing great progress, it has become increasingly difficult to create true value for our ecosystem in these countries. I have nothing but gratitude and admiration for the accomplishments both teams have achieved in the last months. Seeing the amazing service they built from scratch makes me genuinely proud, and we will do everything we can to support our fellow Heroes on their journey ahead.”
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Transforming German operations to an innovation hub in central Berlin
foodpanda was launched in Germany this summer to bring Delivery Hero’s product closer to employees working in the Berlin headquarters. Following a successful pilot phase in Berlin, operations expanded quickly to additional cities. However, since launching the service, the landscape of the German market changed significantly. External factors, such as an increased number of players and a shortage of riders, provided a new reality towards the end of the year.
At the same time, plenty of other growth opportunities were identified with a better expected return on investment, like other markets and new verticals, primarily in the area of quick commerce. Delivery Hero has therefore taken the conscious decision to pivot the scope of foodpanda Germany, scaling down operations in all cities but central Berlin. As of Q1 2022, foodpanda Germany will continue to ensure that Delivery Hero’s employees in the Berlin headquarters can experience the product and technologies that they build. The team will provide crucial insights on the company’s service, test new features and drive innovation for the whole delivery industry.
All affected employees, riders, pickers, customers and partners have been informed about the upcoming change. The company will do its best to transition employees from foodpanda Germany to positions within the Delivery Hero Group, or with partners from the company’s industry network. Employees who do not stay within the Delivery Hero Group will receive a severance package.
Exiting Japan – process to divest starts in Q1 2022
A very similar situation has evolved in Japan, a market Delivery Hero entered in September 2020. In order to focus on other growth priorities within the group, Delivery Hero plans to divest its Japanese entity. The divestiture process will be kicked off in Q1 2022. During this upcoming transition period, it is Delivery Hero’s utmost priority to support all Heroes and express gratitude for the dedication they have shown in the last 1.5 years.
Delivery Hero operates in around 50 countries across Asia, Europe, Latin America, the Middle East and North Africa.
