Niklas Ostberg, the CEO of Delivery Hero, the Berlin-based owner of food and grocery delivery platform foodpanda, has expressed contentment with retaining the foodpanda brand.
Although Delivery Hero acknowledged discussions about potentially selling its Asia business in September last year, Ostberg highlighted growth prospects for foodpanda, as reported by CNBC.
He elaborated that foodpanda is now reaching breakeven and no longer impacting Delivery Hero's profitability adversely, so he is open to keeping foodpanda indefinitely.
Delivery Hero recorded a 9% increase in total segment revenue to US$11.2 billion in 2023 and reiterated its 2024 adjusted EBITDA guidance, tripling that of 2023, to address a decline in its shares, CNBC added.
Ostberg emphasised that Delivery Hero was not compelled to sell foodpanda, having never built the business to sell it. However, he noted that if an offer comes along at a price they deem fair, they would consider it thoughtfully.
While Delivery Hero was in talks to sell foodpanda a few months ago, reports suggested that tech platform Grab could acquire the unit for as much as a billion euros.
Delivery Hero stated, "Any discussions or plans are in their preliminary stages." These negotiations reportedly involve selected Southeast Asian markets, including Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines, and Thailand.
Last year, foodpanda announced plans to downsize its team in the APAC region to streamline operations. According to a company spokesperson, the decision was made to ensure agility and efficiency.