Until recently, had wars with the other two competitors: Jitse Groen, founder of the Empire Takeaway, a self-confident Dutchman Delivery. And Niklas Ostberg, CEO of Delivery Hero, from the appearance rather reserved, but internally for the sporting ambitions known.
the two had fought Bitterly to the German market. It came to the question of who brings the people to the food to the door-to-door: Lieferando, the German branch of the Takeaway? Or hero pizza.de and Foodora delivery, the three brands, with Delivery Hero occurs in this country?
Because it is the customer, in principle, no matter who handles your Pizza-Pasta-Sushi-order, as long as the food does not arrive cold to you, was fought the contest, especially through advertising: More than 100 million euros, Delivery Hero and Takeaway put together in posters and TV commercials. Alone, 2018, mind you. Sales and advertising expenditure were not in healthy proportion.
At the end had maneuvered Groen and Ostberg in a hopeless situation: Both had won in Germany with a market share of approximately 50 percent. At the same time, the advertising battle was a brockte them, but deep in the red. These millions of losses at some point low or one would gain the significant market share, had become increasingly unlikely.
The Business of delivery platforms, a monopoly business
is not to have drive Forever, that much was clear, this ruinous game. Now Ostberg was: He sold to Delivery hero’s business in Germany to the Dutch competitors.
According to Ostberg’s opinion, it had become virtually impossible to earn in the foreseeable future, with the German money market. Because the business of delivery platforms is a monopoly business: A clear market leader can set the placement fee is high, and the advertising will drive spending down. When two people fight on the other hand, the title of number one, have in the end lost both.
Ostberg and Groen knew that. Several times she had met the two in the past, to talk about the tricky situation in Germany, to hear from business circles. But for a long time neither of them was ready to give in. Up to this Friday.
Delivery Hero now wants to grow somewhere else
Delivery Hero wants to concentrate the sales on other markets than Germany. Especially in Asia, Latin America and Canada, the company wants to grow. 250 million euros is to be invested in the coming year.
In comparison to the Takeaway group, Delivery Hero was established a long time much more international. In more than 40 countries, the company handles currently, orders or these with their own driver fleet to the customer’s home. For Delivery Hero, the sale of the three German brands was an acceptable loss, says Ostberg. Overall, the market was identified in Germany, less than ten percent of the total business of Delivery Hero.
the adversary Jitse Groen looks after the Acquisition strengthened. In a conference call with analysts, he referred to the position of his company in the Netherlands: Takeaway make not only more sales than in Germany, but work at the same time, profitable – although the Netherlands are considerably smaller. To transfer this invoice to Germany, to show this, the potential of the market.
Groen also said that he wanted to merge the three brands of Delivery Hero as quickly as possible with Takeaway. In the streets of German cities, is likely to become so in the future, less colorful: The Foodora driver with your pink-colored clothing, and the bulky food boxes on the back, in all likelihood, disappear. Instead, the Messengers will ride soon on orange E-Bikes through the area, confirmed this to be a Takeaway-speaker. The 2000 Foodora driver wants to take on Takeaway, as well as the 300 to 400 other employees of Delivery Hero, which are affected by the sale.