Delivery Hero acquires Foodpanda

Berlin based online Food takeaway service Delivery Hero, one of Europe’s biggest start-ups will acquire competitor Foodpanda, a sign further consolidation to fend of new competition in Europe’s sought after food delivery business. The acquisition brings together two top food delivery startups based in Germany.

After this acquisition, the combined group is expected to process over 20 Million orders per month across 47 countries. Delivery Hero currently serves across 33 countries and Foodpanda in 22 countries. With this deal, Rocket Internet stake in Delivery Hero will grow up to 37.7%. The acquisition of Foodpanda will enable Delivery Hero to consolidate its market leadership in the Middle East and add 20 new countries in Eastern Europe, MENA and Asia.

Delivery Hero, which was most recently valued at $3.1 Billion and competes directly with publicly listed Just Eat, along with newer premium entrants such as Deliveroo, Uber Eats & Amazon. Delivery Hero and Foodpanda are both backed by German ecommerce firm Rocket Internet, which has invested 800 million euros in Delivery Hero last year and put 300 million euros into Foodpanda which focuses on deliveries in Eastern Europe, the Middle East and Asia. 

Foodpanda has built a fantastic position and service offering some of the largest food delivery markets globally. In November end, the company had announced the participation of Sunny Leone in their digital marketing campaign. The company had said that the campaign is going to target consumers through different Social Media platforms like Snapchat, Facebook, and Instagram etc.