The battle for supremacy in German food delivery space had a clear outcome today when Dutch food delivery giant Takeaway.com bought out its archrival – Delivery Hero. The company would be surrendering all of its operations in Germany to Takeaway.com for a sum of 930 million Euros ($ 1.1 billion).
As a part of the deal, Delivery Hero’s Lieferheld, Pizza.de and foodora brands will all be merged with Takeaway.com’s Lieferando.de brand. In return, Delivery Hero would be paid €508 million in cash and €422 million worth in shares, thereby giving them 18% of Takeaway.com’s shares and a seat at the company’s board.
The procurement was a hit at the stock market. Delivery Hero which has a market cap of €5.9 billion saw its share prices surge by 14% while Takeaway.com which is currently valued at €2.5 billion saw its shares rise by 24%.
This transaction enables us to strengthen our global footprint and increase our focus on our key growth regions while becoming a shareholder in Takeaway.com, enabling Delivery Hero to benefit further financially from any additional value that Takeaway.com may create
Niklas Östberg, CEO of Delivery Hero,
Takeaway.com which is also a leading food delivery service across Continental Europe, Israel, and Vietnam released a statement regarding their thoughts on the deal. They believe this transaction provides them with a stronger proposition for both consumers and partner restaurants, and also would enable them to operate at a significantly at a larger scale. While this would double Takeaway’s orders in the German market they reckon that there is an opportunity for ample growth.
The combined company would be responsible for over 17% of the food being delivered in the country, with an annual 47 million orders.