Watch out Uber and Just Eat, Delivery Hero has its sights on the lucrative German market

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

Delivery Hero headquartered in Berlin
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DHER, -2.81%
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.

Read: Why DoorDash and Uber Eats Delivery cost you more

The move will increase the pressure on Just Eat in Amsterdam
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TKWY, -3.45%,
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.

Read: Burger Wars? Wendy’s is back in the UK after 20 years and ready to take on McDonald’s and Burger King

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 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 shares fell 3.7%, their lowest level since March.

Read: Delivery Hero gives guidance after strong results

Jatse Groen, Chief Executive of Just Eat, responded to the news on Twitter
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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 is on track to complete its $ 7.3 billion Acquisition of Chicago-based Grubhub
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in the first half of this year in a deal that will create one of the world’s largest delivery companies.

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