Delivery Hero has taken the decision to not continue investing in China
Divesting business over the next couple of months
March 2nd 2016 – Delivery Hero, the global leader in online and mobile food ordering, today announced that it has taken the decision to discontinue investing in its Chinese business Waimai Chaoren that currently employs c. 400 people.
The company based its decision on the unique competitive situation in China that has become anything but sane with competitors flooding the markets with free food to users without charging commission from restaurants. Under these circumstances Delivery Hero feels that the amount of investment required is incalculable. The Chinese market as it has evolved over the last 12 months doesn’t fulfill the investment criteria of Delivery Hero anymore.
Niklas Östberg, CEO of Delivery Hero: “There are fights worth fighting, for us, this is not one of them and we will be divesting our business over next couple of months.”