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Delivery Hero to retain foodpanda business amidst talks to sell Asia business

Delivery Hero to retain foodpanda business amidst talks to sell Asia business

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Niklas Ostberg, the CEO of Delivery Hero which is the Berlin-based owner of online food and grocery delivery company foodpanda, has reportedly said that he is happy to hold on to the foodpanda brand.

While Delivery Hero confirmed to MARKETING-INTERACTIVE that it was discussing the potential sale of its Asia business in September last year, Ostberg said that he sees growth potential for foodpanda according to a report by CNBC.

Don't miss: Foodpanda confirms APAC layoffs amid talks of partial Asia business sale

Ostberg further explained that as the business has become breakeven and ceases to drag on Delivery Hero’s profitability, he will happily consider holding on to foodpanda forever.

In fact, Delivery Hero reported a 9% bump in total segment revenue to US$11.2 billion in 2023 and has restated its guidance for 2024 adjusted EBITDA which is triple that of 2023 in response to a plunge in its shares, added the report.

Ostberg also explained that Delivery Hero was not forced to sell foodpanda as they did not build a business with the intention to sell. However, in the event someone offers them a price that they feel is of a good value, they will act rationally about it, he reportedly said.

MARKETING-INTERACTIVE has reached out for more information.

While Delivery Hero was still negotiating the sale of foodpanda a few months ago, it was reported that tech platform Grab could pay the equivalent of as much as a billion euros for the unit.

"Delivery Hero confirms negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asia markets," it said. "Any discussions or plans are in their preliminary stages."

According to German business magazine Wirtschaftswoche, these markets include Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand.

Last year, foodpanda confirmed that it will be reducing its team size in the APAC region, according to the company when MARKETING-INTERACTIVE reached out.

It explained that it was conducting the layoffs because there was a need to "streamline" its operations. "The need to streamline our operations to become leaner and more agile remains critical," a spokesperson at the company said.

Related articles:
MyCC to investigate possible monopoly in Grab’s potential acquisition of foodpanda
Delivery Hero reportedly selling stake in Deliveroo
foodpanda's APAC director of advertising and partnerships steps down

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