In a surprising turn of events, Delivery Hero, the Berlin-based online food delivery giant, is reportedly in advanced negotiations to divest a portion of its Asian business.
While the deal specifics are yet to be finalized, insiders suggest that Singapore’s tech behemoth, Grab, could potentially acquire this chunk of the business for slightly over $1.07 billion.
Investors seeing potential
The potential sale is of Delivery Hero’s operations under its well-known Foodpanda brand in several Asian markets. This includes Singapore, Cambodia, Malaysia, Myanmar, the Philippines, and Thailand. Sources have confirmed this development, but Delivery Hero and Grab have remained tight-lipped, refraining from commenting on these speculations.
Upon hearing the news, investors responded enthusiastically, causing the delivery company’s stock to surge by as much as 13.5%. This sharp uptick in stock value is undoubtedly a testament to investors’ confidence in this move.
The company has steadfastly focused on a dual objective: achieving profitability while sustaining its growth momentum. This comes on the heels of dwindling investor faith following the initial surge in business during the pandemic.
Grab has, however, exhibited robust financial performance. In the quarter concluding on June 30, Grab boasted an impressive revenue of $567 million.
Delivery Hero’s 2023 profits
A month ago, the German online food delivery giant reported positive adjusted EBITDA, marking a turnaround from previous losses. Its total segment revenue is expected to grow around 15% this year, reflecting its strong performance.
In Q2’2023 the company exceeded expectations with an 8% annual increase in gross merchandise value (GMV) and an impressive 16% growth in total segment revenue. The company’s GMV outside of Asia recorded an exceptional double growth of 18% year-on-year. CFO Emmanuel Thomassin expressed satisfaction with the company’s progress, highlighting the achievement of positive gross profit by Dmarts, one of Delivery Hero’s initiatives.
Comparing its competitors, in 2022, Uber Eats generated approximately $10.9 billion globally, surpassing Delivery Hero, which reported $9.2 billion, and DoorDash with $6.6 billion in revenue.
Delivery Hero’s positive financial results and commitment to sustainability position it as a critical player in the evolving food delivery industry.
As negotiations progress, the business world eagerly awaits further details regarding this potential billion-dollar transaction, which could reshape the landscape of Asia’s fiercely competitive online food delivery industry.
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About the author
Marce has contributed tech to various prominent publications since 2018, offering a transparent perspective into the tech industry and its effects on its users. She now spends her time developing insightful content for industry players. You know, when she's not gaming or geeking out about the latest fad.
