Berlin-based food delivery company Delivery Hero has acquired Berlin-based food delivery company Foodpanda. And both companies are backed by Rocket Internet. With the deal, the German incubator will increase its Delivery Hero stake to 37.7 percent.
It’s unknown how much Delivery Hero paid for its smaller rival Foodpanda, but we do know that Rocket Internet received newly issued shares in Delivery Hero in exchange for all its shares in Foodpanda. The German incubator now owns 37.7 percent of Delivery Hero.
Delivery Hero will operate in 47 countries
Now Delivery Hero has acquired Foodpanda, the combined business will process more than 20 million orders a month and operate in 47 countries. Thanks to the acquisition, Delivery Hero will increase its presence in the Middle East, Eastern Europe and Asia.
“The combination of these two companies further consolidates key markets resulting in significantly improved market positions”, Rocket Internet’s CEO Oliver Samwer says. “Delivery Hero is also acquiring new markets with leading market positions further broadening its geographic footprint.”
Delivery Hero was recently valued at 2.9 billion euros and with the acquisition of Foodpanda, the company is ready for the long-rumored planned IPO. In many European countries, Delivery Hero has to compete with Dutch company Takeaway. The question ‘Who will dominate the food delivery market in Europe?‘ still hasn’t been answered…