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Delivery Hero acquires rival Foodpanda

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CIOL Writers
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CIOL Delivery Hero acquires rival Foodpanda

Online food takeaway service Delivery Hero is acquiring rival foodpanda that should help the Berlin-based company to consolidate its position in the European market and add 20 new Asian, MENA and East European countries to its arsenal.

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Though the terms of the acquisition remain undisclosed, the deal is expected to close prior to the end of this year, before 31st December.

Rocket Internet, an investor in both the companies, said the acquisition will be funded through the issuance of new shares in Delivery Hero to existing foodpanda shareholders. As a result, Rocket Internet will increase its ownership in Delivery Hero to 37.7 percent on a fully diluted basis post transaction.

“The combination of foodpanda and Delivery Hero, one of our most important companies, further consolidates key markets resulting in significantly improved market positions. Delivery Hero is also acquiring new markets with leading market positions further broadening its geographic footprint,” said Oliver Samwer, CEO of Rocket Internet.

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The German startup factory also mentioned that the combined entity will be processing over 20 million orders per month across 47 countries. It will also lead to a sudden increase in the size of its total addressable market for Delivery Hero.

Both Delivery Hero and foodpanda are headquartered in Berlin. Delivery Hero was founded by a cohort of six individuals, namely Kolja Hebenstreit, Niklas Östberg, Nikita Fahrenholz, Claude Ritter, David Bailey, Markus Fuhrmann in 2010 to tackle the demand for food ordering and delivery in Germany.

But, slowly the company expanded to become a worldwide network with 21 countries and over 73,000 restaurant partners. And the addition of foodpanda to the $3 billion business will only further fuel the expansion.

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