Berlin based online food delivery giant Delivery Hero has bought foodpanda from German startup incubator Rocket Internet. In exchange Rocket Internet has taken newly issued shares in Delivery Hero.
Rocket Internet’s stake in Delivery Hero is now 37.7% as a result of the deal.
Now Delivery Hero has taken on foodpanda, Rocket Internet hopes that the synergies between the two companies may at last produce profits.
According to a statement posted on Rocket Internet’s website on Saturday: “The transaction strengthens Delivery Hero’s global leadership position in online food ordering and delivery, with the combined group processing over 20 million orders per month across 47 countries. foodpanda operates in total in 22 countries with market leading positions in 17 of them.
“The acquisition of foodpanda will enable Delivery Hero to consolidate its market leadership position in the Middle East and adds 20 new countries in Eastern Europe, MENA and Asia to Delivery Hero’s platform increasing the size of Delivery Hero’s total addressable market. Furthermore, the combination of the two key companies leads to a significant reduction of complexity at group level for Rocket Internet.”
Delivery Hero and foodpanda work in what is known to be a fiercely competitive market across most of the major metropolitan centres of the world. They are up against giants such as Amazon and Uber and as a result even well financed companies fail quite regularly. Big is beautiful, so they say and the two businesses together may achieve the margins to allow profit…
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