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 pulling out of six German cities. The delivery service is giving up in Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart. Just a month ago, the Delivery Hero brand had announced its expansion into these metropolises. Only in Berlin, where Foodpanda had started in the summer, a so-called "innovation center" will remain. There, technology and logistics solutions for the delivery industry are to be developed. Nevertheless, the abandonment of the expansion is a bitter setback.

As reasons for the withdrawal, Foodpanda states that there are now more quick-commerce providers and too few drivers to deliver the goods. Since its launch in Germany, the market in this country has changed dramatically. In addition, Delivery Hero has found other growth opportunities that it says should yield more returns. "Faced with a very different reality than when we entered these markets, we have to pursue other growth opportunities with greater potential with a heavy heart," says Delivery Hero CEO and co-founder Niklas Östberg. Affected employees, drivers, pickers, customers and partners have already been informed, he said. Employees should, if possible, get a connection job. If that is not possible, they are to receive severance pay.

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