Delivery Hero announced plans on Wednesday to re-enter the highly competitive German home market next month, two years after the company sold its operations in the country to Dutch rival Just Eat Takeaway.com.
Delivery Hero headquartered in Berlin
will initially begin in June with a “soft” launch of the Foodpanda brand in Berlin, which promises to deliver groceries and other convenience items in just seven minutes, the company said in one statement.
This is followed by an official market launch in more German cities, which offers the delivery of restaurants and “quick commerce” and which Delivery Hero makes available via Dmart – its own network of small warehouses and local shops.
Niklas Östberg, managing director and co-founder of Delivery Hero, said the company aims to “shape the German delivery industry forever,” along with its full delivery ecosystem – drivers, restaurants, local shops and customers.
The move will increase the pressure on Just Eat Takeway.com in Amsterdam
The company has dominated the German market since purchasing Delivery Hero’s local operations in 2018 to focus on expanding in Asia, Europe, the Middle East and America.
Meanwhile Uber Technologies
UBER, + 0.92%
In April, plans to expand Uber Eats delivery service in the country announced after smaller Finnish rival Wolt took a similar move.
At the same time, Germany is experiencing a boom in ultra-fast startups for the delivery of food such as the headquarters in Berlin Gorillas and Swift, which should deliver in 10 minutes. Getir from Istanbul, which became the most valuable startup in Turkey In March, after a value of 2.6 billion US dollars in the third round of donations, deliveries to the German capital are to begin in a few months.
Jefferies analysts said Just Eat Takeaway.com has faced competition due to the lack of broader delivery options, although there has been talk of small-scale trials in the grocery store recently. “There are now indications that these small studies now need to be accelerated,” they wrote in a research report to customers on Wednesday.
Delivery Hero shares fell more than 3% early this morning in Frankfurt on Wednesday, while Just Eat Takeaway.com shares fell 3.7%, their lowest level since March.
Jatse Groen, Chief Executive of Just Eat Takeaway.com, responded to the news on Twitter
TWTR, + 2.07%,
The company would “defeat” Delivery Hero in Germany, as it did in the Netherlands, Great Britain and Poland. “Competition makes us stronger,” he wrote.
Just Eat Takeway.com is on track to complete its $ 7.3 billion Acquisition of Chicago-based Grubhub
in the first half of this year in a deal that will create one of the world’s largest delivery companies.