Delivery Hero to reorganize its food delivery business
Closing down Valk Fleet, merging delivery operations at foodora
March 15th 2016 – Delivery Hero, the global leader in online and mobile food ordering, today announced that its food delivery business is going to be reorganized. The company will close down its logistic platform Valk Fleet and will concentrate all delivery related operations at foodora, an on-demand food service for high-end restaurants.
Valk Fleet currently employs c. 200 people, with the majority based in Germany and the UK. In addition around 1,000 drivers have been working for Valk Fleet, the vast majority of them as contractors. The number of employees changing from Valk Fleet to foodora is currently unknown.
The company based its decision on its experience from operating two different delivery units at the same time and its minority investment via Food Express. Merging all delivery operations at foodora is the consistent step for a sustainable solution for a segment that is notorious for its low margins.
Niklas Östberg, CEO of Delivery Hero: “We have made some tough learnings when it comes to food logistics. Despite having built, possibly, the most advanced logistic tools in the industry, we have come to realize how concentrated the approach needs to be. We have therefore decided to focus all our logistics efforts to foodora. After having taken a couple of tough decisions lately, we now feel our operational structure is set to combine exceptional growth with profitability.”
In February 2016, Delivery Hero processed more than 13 million orders, more than double from last year.