Delivery Hero sells its German business to in a $1.1B deal

One more big consolidation play is underway in the highly competitive European food delivery business, amid more pressure from newer players like Uber Eats and Deliveroo. Today, Delivery Hero announced that it will be selling its operations in Germany — its actual home market — to Dutch rival for a total consideration of €930 million (or about $1.1 billion).

The deal covers all of Delivery Hero’s operations in Germany, which include the Lieferheld, and foodora brands, which will now merge with’s brand. The financial terms: €508 million in cash and 9.5 million shares worth c. €422 million, giving Delivery Hero an 18 percent share of Delivery Hero also will get a seat on the board unless it sells off shares that brings its holding to less than 9.99 percent. The companies say the deal should be closed in the first half of 2019.

The market is reacting positively to Delivery Hero’s news: its market cap is currently €5.9 billion and shares are up more than 14 per cent  in current trading. Meanwhile, Takeaway is valued at €2.5 billion and its shares are up by more than 24 per cent.

Delivery Hero’s Germany businesses recorded 23 million orders, with Gross Merchandise Value (“GMV”) of €462 million and revenues of €76 million, the company said.

“This transaction provides with a stronger proposition for both consumers and partner restaurants in the German market. It also allows to operate on a significantly larger scale which is essential in building a profitable online food delivery business,” said Jitse Groen, CEO and founder of, in a statement. “Although the transaction almost doubles’s orders in Germany, there is still ample growth ahead, given that penetration of online food delivery in Germany is amongst the lowest in Europe. We look forward to welcoming Delivery Hero as a shareholder.”

Delivery Hero may have had its start and global headquarters in Berlin in 2010, but the company has made a lot of moves over the years to build and acquire food delivery businesses across a wide network of other countries, with a particular focus on emerging markets — not unlike another German e-commerce player, Rocket Internet, which itself was a big rival of Delivery Hero’s in food until the two undertook their own merger in a coopetition play.

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