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Delivery Hero SE
ISIN: DE000A2E4K43
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Delivery Hero SE · ISIN: DE000A2E4K43 · EQS - Company News (84 News)
Country: Germany · Primary market: Germany · EQS NID: 1260914
22 December 2021 08:04AM

Delivery Hero scales down foodpanda Germany to a Berlin-based innovation hub and announces the planned divestiture of foodpanda Japan

DGAP-News: Delivery Hero SE / Key word(s): Miscellaneous
Delivery Hero scales down foodpanda Germany to a Berlin-based innovation hub and announces the planned divestiture of foodpanda Japan

22.12.2021 / 08:04
The issuer is solely responsible for the content of this announcement.

  • foodpanda Germany will exit six German cities including Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart, while an innovation hub will remain in central Berlin and concentrate on piloting new product features and technologies
  • Additionally, Delivery Hero plans to divest foodpanda Japan in Q1 2022
  • These decisions allow Delivery Hero to shift its resources to highly attractive growth opportunities in other markets and new verticals, especially in quick commerce, that are expected to generate more value for the ecosystem and shareholders
  • Delivery Hero has informed all relevant stakeholders and, where possible, foodpanda employees will transfer to positions within the Delivery Hero Group, its industry partner network or receive a severance package

Berlin, 22 December 2021 - Delivery Hero SE ("Delivery Hero" or "the company"), the world's leading local delivery platform, today announced plans to scale down its German operations, foodpanda Germany, to a Berlin-based hub focused on developing innovative logistics and tech solutions for the delivery industry. In addition, the company announced a timeline for the planned divestiture of its Japanese entity which also operates under the brand foodpanda.

Niklas Östberg, CEO and Co-Founder of Delivery Hero, said: "Scaling down our operations in Germany and planning to divest our Japanese business have not been easy decisions. Facing a very different reality now than we did entering these markets, it is with a heavy heart that we need to pursue other growth opportunities with larger potential. Despite having built up two fantastic foodpanda teams showing great progress, it has become increasingly difficult to create true value for our ecosystem in these countries. I have nothing but gratitude and admiration for the accomplishments both teams have achieved in the last months. Seeing the amazing service they built from scratch makes me genuinely proud, and we will do everything we can to support our fellow Heroes on their journey ahead."

Transforming German operations to an innovation hub in central Berlin
foodpanda was launched in Germany this summer to bring Delivery Hero's product closer to employees working in the Berlin headquarters. Following a successful pilot phase in Berlin, operations expanded quickly to additional cities. However, since launching the service, the landscape of the German market changed significantly. External factors, such as an increased number of players and a shortage of riders, provided a new reality towards the end of the year.

At the same time, plenty of other growth opportunities were identified with a better expected return on investment, like other markets and new verticals, primarily in the area of quick commerce. Delivery Hero has therefore taken the conscious decision to pivot the scope of foodpanda Germany, scaling down operations in all cities but central Berlin. As of Q1 2022, foodpanda Germany will continue to ensure that Delivery Hero's employees in the Berlin headquarters can experience the product and technologies that they build. The team will provide crucial insights on the company's service, test new features and drive innovation for the whole delivery industry.

All affected employees, riders, pickers, customers and partners have been informed about the upcoming change. The company will do its best to transition employees from foodpanda Germany to positions within the Delivery Hero Group, or with partners from the company's industry network. Employees who do not stay within the Delivery Hero Group will receive a severance package.

Exiting Japan - process to divest starts in Q1 2022
A very similar situation has evolved in Japan, a market Delivery Hero entered in September 2020. In order to focus on other growth priorities within the group, Delivery Hero plans to divest its Japanese entity. The divestiture process will be kicked off in Q1 2022. During this upcoming transition period, it is Delivery Hero's utmost priority to support all Heroes and express gratitude for the dedication they have shown in the last 1.5 years.

Delivery Hero is the world's leading local delivery platform, operating its service in around 50 countries across Asia, Europe, Latin America, the Middle East and North Africa. The company started as a food delivery service in 2011 and today runs its own delivery platform on four continents. Additionally, Delivery Hero is pioneering quick commerce, the next generation of e-commerce, aiming to bring groceries and household goods to customers in under one hour and often in 10-15 minutes. Headquartered in Berlin, Germany, Delivery Hero is listed on the Frankfurt stock exchange since 2017, and became part of the leading index DAX (Deutscher Aktienindex) in 2020. For more information, please visit www.deliveryhero.com.

Kingsum Li
Corporate & Financial Communications
+49 151 112 086 22

Christoph Bast
Head of Investor Relations
+49 160 30 13 435

This release may contain forward looking statements, estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE ("forward-looking statements"). These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "intends," "may," "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of Delivery Hero SE and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.

22.12.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: Delivery Hero SE
Oranienburger Straße 70
10117 Berlin
Phone: +49 (0)30 5444 59 105
Fax: +49 (0)30 5444 59 024
E-mail: ir@deliveryhero.com
Internet: www.deliveryhero.com
ISIN: DE000A2E4K43
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, OTC QB, OTC QX, SIX, Vienna Stock Exchange
EQS News ID: 1260914

End of News DGAP News Service

1260914  22.12.2021 

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