News of yet more movement among on-demand food startups: Rocket Internet-backed Foodpanda announced today that it has acquired Delivery.com’s Hong Kong business and will take over its operations there.
Food delivery startups have popped up all over the world, but low margins, high delivery costs, and competition means that many will have to merge with rivals if they want to survive. Foodpanda’s announcement comes a day after SpoonRocket said it has been purchased by Brazilian food delivery platform iFood and a few weeks after Berlin-based Delivery Hero confirmed that it will exit China after struggling to compete with domestic players.
Foodpanda has been on an international shopping spree over the past two years, snapping up food delivery startups around the world in order to expand in Europe, Asia, and Latin America.
Since the end of last year, however, Foodpanda has scaled back or closed in some countries. For example, it shut down it Vietnam business in December and pared back in India, laying off hundreds of employees. According to Reuters, Foodpanda operated in 40 markets a year ago, but has now reduced that number to 24.
Both Delivery.com, which is based in New York, and Foodpanda launched in Hong Kong in 2014. Foodpanda’s other acquisitions there so far include Koziness and Dial a Dinner.
In a statement, Foodpanda Group co-founder and chief executive officer Ralf Wenzel said, “We are very excited to welcome delivery.com Hong Kong’s corporate clients, customers, and team to the Foodpanda family. The team has built an excellent operation in one of our key markets and will help Foodpanda continue to drive high growth there.”
Featured Image: Hung Chung Chih/Shutterstock