German meal delivery service Delivery Hero has acquired its competitor Foodpanda, another step in the branch's consolidation process.
More interesting for IPO
Rocket Internet is involved on both sides of the deal: it has 49.1 % of Foodpanda's shares and invested about 800 million euro into Delivery Hero in the past year. Foodpanda's acquisition will be done in shares, boosting Rocket Internet's share in Delivery Hero from 1.1 % to 37.7 %. The deal may fit Rocket Internet's strategy to make the meal delivery service more appealing for an IPO.
Foodpanda handles about 2 million orders every month, compared to Delivery Hero's 18 million orders on a monthly basis. Together, the two companies are active in 47 countries, but Foodpanda did announce last month it would sell its Russian activities to Mail.ru for 100 million euro.
The merger of these two German competitors is bad news for Dutch Takeaway, because it had targeted the German market for growth, investing 37 million euro in local marketing.