Delivery Hero aim to break even by end of 2022

German restaurant and grocery delivery multinational Delivery Hero SE has announced it may break even in the second half of 2022 in a trading statement released this week.

Delivery Hero expects adjusted core earnings to reach €100 million in Q4, while investments in quick commerce are set to peak by the end of this quarter and decline gently thereafter.

“Delivery Hero has always been investing into growth with the clear ambition of reaching the scale needed to achieve profitability,” commented Emmanuel Thomassin, CFO of Delivery Hero.

“We have remained confident that through achieving the right size, we are able to bring tremendous benefits to all partners in our ecosystem, as well as to our shareholders. The investment strategy has proved to be successful, and we are on a solid trajectory to turn our food delivery business profitable during the second half of this year.”

The pandemic has been good for business at Delivery Hero, which saw a boom in demand during the lockdowns in its territories around the world. It invested heavily in quick commerce, and now offers grocery and convenience store deliveries to customers in many cities within 15 minutes. As with so many in the sector it is loss making, and would be among the first to achieve no losses should it achieve its goal.

As part of the trading statement the firm said it now holds around 83% of the shares in quick commerce delivery startup Glovo, after taking a majority stake in it in December.

More:   Just Eat share price plummets as losses mount up