Delivery Hero, the parent company of food and grocery delivery brand foodpanda, has confirmed it is in early-stage talks with potential buyers to sell its delivery business in Southeast Asia.
One of the parties involved in the ongoing negotiations is rival company Grab, which Delivery Hero says might pay slightly over €1 billion for foodpanda operations in seven countries – Cambodia, Laos, Malaysia, Myanmar, Singapore, Thailand, and the Philippines.
Should a buyer close in on the deal, Delivery Hero will still have a foodpanda presence in other Asian markets, such as Hong Kong, Pakistan, and Taiwan. Delivery Hero itself operates in more than fifty countries across the globe.
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By streamlining its operations, Delivery Hero aims to enhance its dominant position and drive profitability in markets with better growth opportunities. Investors, who started losing confidence in the company following a huge boost in demand during the global health crisis, have embraced news of the potential sale and caused shares to rise by as much as 13.5%.
Foodpanda itself has announced a new wave of layoffs, as the Singapore-headquartered company explains the need to be “leaner, more efficient and even more agile.” This decision comes after prior job cuts in February as well as in September last year, which were attributed to economic challenges.
Foodpanda launched in the Philippines in June 2014. Based on research data, foodpanda had a 48-percent market share in the country as of 2021 and trailed behind Grab’s 52 percent.