Delivery Hero to shut tech hubs in Turkiye and Taiwan

December 19, 2023 admin-dominor

Germany-based online food delivery company Delivery Hero is planning to shut down its global tech hubs in Turkiye and Taiwan.

The company is also planning to cut its workforce at its headquarters in Berlin.

Delivery Hero in a statement said: “While we believe that this is a necessary step as our business enters the next stage of its maturity, it does mean we will be letting go of employees who have made many valuable contributions in their time with us.”

The company had already reduced the workforce at its Berlin headquarters and global service roles by 13% during this month and did not disclose how many employees would be affected by its latest decision.

The company is focusing on profitability and maintaining its investors’ confidence, which has been fading after a pandemic-driven boost.

In September 2023, Delivery Hero reportedly explored options to partially divest its Asian business to the Singapore-based tech company Grab.

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By GlobalData

News of the deal was first reported by German weekly business news magazine Wirtschaftswoche.

Although the final deal value is still under negotiation, it is estimated that Grab could pay just over €1bn ($1.07bn) for the unit, according to Wirtschaftswoche’s report.

The food delivery company is planning to divest activities under the Foodpanda brand in Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore and Thailand.

In July 2023, Delivery Hero acquired the remaining 37% stake in its Saudi Arabian subsidiary HungerStation for €267.3m.

Connecting more than 10,000 partners with customers, HungerStation has established itself as one of the leading food delivery players in the region.

During the fiscal year 2022, HungerStation reported a revenue growth of 36% to €609m and positive earnings before interest and taxes, including group costs of more than €50m.