Grab May Buy Foodpanda In Sale Of Southeast Asia Operations
Delivery Hero, the Berlin-based parent company of foodpanda, has confirmed that it intends to sell part of its Asia business.
Currently, it’s allegedly in talks to sell the Southeast Asia-operating food delivery app. Apparently, Singapore-based rival company Grab may be a potential buyer.
Should the sale go through, Grab may pay over S$1.46 billion for foodpanda.
This decision will likely help boost profits for Delivery Hero after it waned following the Covid-19 pandemic.
Delivery Hero reportedly plans to sell foodpanda’s operations in Singapore
According to German business magazine WirtschaftsWoche, online food ordering company Delivery Hero is in discussions to sell part of its business in Asia.
More specifically, it intends to sell its subsidiary brand foodpanda’s operations in the following countries:
The sale likely will not affect the app’s operations in Bangladesh, Hong Kong, Pakistan, and Taiwan. In these countries, foodpanda will remain with Delivery Hero for the time being.
Initially, a spokesperson for Delivery Hero denounced the “market rumours” of the potential sale.
On Wednesday (20 Sep), however, the company told WirtschaftsWoche that preliminary negotiations of a potential sale in those countries are underway.
Grab apparently in talks to buy foodpanda in partial sale
A potential buyer of foodpanda’s Southeast Asian business is reportedly Singapore-headquartered competitor company Grab.
The business magazine quoted an insider who claimed that Grab has already started the process of reviewing foodpanda’s operations.
If the sale goes through, Grab may pay upwards of €1 billion (S$1.4 billion) for the rival company’s arms in each of the countries.
At the time of writing, Grab has yet to publicly address this matter.
Delivery Hero aims to increase profitability following pandemic
The aim of Delivery Hero’s decision to sell off foodpanda in the above Asian markets is to supposedly increase profitability for the parent company.
Per Bloomberg, the growth of Delivery Hero has been at a standstill since Covid-19 lockdowns eased.
This may finally help the business turn a profit, as it has made a loss every financial year to date, added WirtschaftsWoche.
“Asian markets are liquidity burners,” said the insider.
Have news you must share? Get in touch with us via email at email@example.com.
Featured image by MS News.
Drop us your email so you won't miss the latest news.