In a surprising market move, German food delivery leader Delivery Hero has completely exited its position in British competitor Deliveroo, selling its entire 4.5% stake. This strategic divestment comes as the food tech sector faces increasing pressure to demonstrate profitability amid challenging economic conditions.
Details of the Transaction
The Berlin-based company confirmed the sale of approximately 68 million Deliveroo shares through a "bookbuilding process" to institutional investors. While the exact sale price remains undisclosed, the stake was valued at around £76 million based on recent market prices.
Market Reactions and Strategic Implications
Analysts suggest this move indicates Delivery Hero's focus on:
- Streamlining its investment portfolio
- Prioritizing core markets
- Reducing exposure to competitive European markets
The sale follows Deliveroo's recent struggles, including a 30% drop in share price over the past year and ongoing challenges in achieving consistent profitability.
Industry Context
This development highlights the ongoing consolidation in the food delivery sector, where companies are:
- Reassessing expansion strategies
- Cutting costs
- Focusing on sustainable growth models
The transaction comes just weeks after Delivery Hero announced a separate deal to sell its Taiwan foodpanda business to Uber for $950 million.
