Amsterdam's Takeaway.com takes over competitor's business
Amsterdam food delivery firm Takeaway.com has agreed to purchase the Berlin-based online food delivery group Delivery Hero’s German business. The Dutch company is set to take over Delivery Hero’s Lieferheld, Pizza.de and Foodora brands in a €930 million deal. The agreement will see the German firm take an 18 per cent stake in Takeaway.com (worth around €442 million based on a share price of €44.40), with the remaining €508 million paid in cash. It still needs to be approved by shareholders but is expected to be completed in the first half of 2019.
One of Europe's biggest food delivery services
Takeaway.com is headquartered on Oosterdoksstraat in Amsterdam city centre and claims to be the leading food deliverer in continental Europe, Israel and Vietnam. Through its app and website, it connects customers with restaurants, with eateries paying commission to Takeaway.com for being listed. The firm processed more than 87 million orders in the first nine months of 2018 alone. Delivery Hero will now cease to operate in its home country and instead focus on expanding in emerging markets. Last year the German firm also left Brazil and Switzerland, and unveiled plans to sell its operations in Australia, France, Italy and the Netherlands.
"Takeaway.com to operate on a significantly larger scale"
Commenting on the deal, Takeaway.com’s CEO and founder Jitse Groen said: “This transaction provides Takeaway.com with a stronger proposition for both consumers and partner restaurants in the German market. It also allows Takeaway.com to operate on a significantly larger scale which is essential in building a profitable online food delivery business. Although the transaction almost doubles Takeaway.com's orders in Germany, there is still ample growth ahead, given that penetration of online food delivery in Germany is among the lowest in Europe. We look forward to welcoming Delivery Hero as a shareholder.”