Foodpanda gives up in Germany

Berlin is to remain the company's only German location. A so-called "innovation center" is to be built there. It is a bitter setback for Delivery Hero.

Foodpanda is withdrawing from six German cities. The delivery service is giving up in Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart. Only a month ago, the Delivery Hero brand had announced its expansion into these cities. Only in Berlin, where Foodpanda was launched in the summer, will a so-called "innovation center" remain. Technology and logistics solutions for the delivery industry are to be developed there. Nevertheless, the discontinuation of the expansion is a bitter setback.

The reasons given by Foodpanda for the withdrawal are that there are now more quick-commerce providers and too few drivers to deliver the goods. The market in Germany has changed dramatically since its launch. In addition, Delivery Hero has found other growth opportunities that it claims will generate more returns. "Given a very different reality than when we entered these markets, it is with a heavy heart that we have to pursue other growth opportunities with greater potential," says Niklas Östberg, CEO and co-founder of Delivery Hero. Affected employees, drivers, pickers, customers and partners have already been informed. If possible, employees should be given a new job. If this is not possible, they will receive severance pay.

The global ordering platform company Delivery Hero has always been based in Berlin. However, the company left the German market some time ago and focused exclusively on foreign markets. To date, the company has achieved a market capitalization of over 24 billion euros on the stock exchange. Delivery Hero tried to return to the German market with the Foodpanda brand. Things are apparently not going well for Foodpanda in Japan either: Foodpanda's business there is also to be sold.