2-2-2024 (BANGKOK) Shares of German food delivery group Delivery Hero fell by as much as 13% on Friday, marking the largest decline since May 2022. The drop came following reports that the company’s deal to sell a portion of its Foodpanda business in Southeast Asia had collapsed.
According to the Malaysian newspaper New Straits Times, Delivery Hero’s negotiations with Singapore-based Grab Holdings to sell its Foodpanda brand in several Southeast Asian markets came to an end without an agreement. Sources familiar with the matter revealed this development.
Delivery Hero, whose largest market is in Asia, has faced stagnation in the region since the easing of pandemic-related lockdowns. In September, the company announced discussions to sell the Foodpanda brand in countries such as Singapore, Malaysia, the Philippines, and Thailand.
In November, Bloomberg reported that China’s Meituan was also exploring the potential acquisition of Foodpanda in these markets. Meituan, founded in 2010, has become China’s largest food delivery platform, operating in over 2,800 cities and counties. The tech giant launched a new food delivery brand called KeeTa in Hong Kong in May.
Meituan’s expansion into Southeast Asia poses a challenge for Grab, the Singapore-based ride-sharing, food-delivery, and fintech company that has emerged as a leader in the region. Grab achieved adjusted profitability for the first time last year, and Meituan would be a formidable competitor compared to Grab’s current regional rivals.
Delivery Hero has not yet responded to requests for comment, while a representative from Grab declined to provide a statement.
