Delivery Hero acquires 100% of Foodora from Rocket Internet
With fast-paced expansion, foodora comes to the forefront of the global food delivery market
Berlin, 17 September 2015 – foodora (www.foodora.com), the Berlin-based company that offers delivery from quality restaurants, is merging with Delivery Hero’s similarly positioned Urban Taste to continue expanding across Europe, North America and Asia.
Since its launch in October 2014, foodora became a leading player in Germany, France, Spain, Italy, Finland, Sweden, the Netherlands, Norway, Austria, Dubai and Hong Kong, with acquisitions made in Canada (Hurrier), Australia (Suppertime) and Austria (Heimschmecker). With the merger, the foodora operations will be brought under Delivery Hero, enabling the company to benefit from the group’s scale and presence. The combined businesses of Urban Taste and foodora will operate under the foodora brand from now on.
Unlike traditional food delivery marketplaces, foodora only partners with selected restaurants and manages a dedicated delivery infrastructure. By using proprietary algorithms and assessing the availability of over 1,500 logistics network participants in real-time, the company identifies the closest driver, rider or walker for each order and coordinates the entire pick-up and delivery processes, allowing restaurants to focus on the preparation of the food.
Combined with Urban Taste, foodora has over 2,000 restaurants signed up and is looking to double that in the course of the next months. “The success lies in how we approach online food delivery,” says Emanuel Pallua, COO of foodora. “Our on-demand service and the fact that we establish a real long-term relationship with our partner restaurants takes away from them the burden of hiring and managing their own drivers. With us, they can tap into the emerging online and mobile audiences without having to invest on technology or marketing, increasing their revenues and utilization of their existing assets without compromise on food quality.”
Furthermore, according to Julian Dames, foodora’s CMO, the advantages to customers are also very appealing. “At foodora, customers can expect a consistent and locally-relevant value proposition in terms of food quality, variety and value, with a reliable and fast delivery service to back it up. After trying our service and experiencing our platform, most customers come back, which encourages us to continue in the direction we are.”
With average delivery time of about 30 minutes and orders growing by an average of 20% every week in the last 6 months, foodora is already the fastest-growing enterprise in the sector globally. And in order to sustain its leadership and expand to more markets, Delivery Hero plans to invest heavily in the company. “We have a very long-term view for this segment and will do what it takes to make sure we are the preferred choice for restaurants and customers worldwide,” says Niklas Östberg, CEO of Delivery Hero.