After a limited attempt to compete in both countries, Delivery Hero SE will close its food delivery business in Germany and wants to divest its Japanese assets.
“Delivery Hero will quit the six locations it recently entered in Germany and focus on testing innovations with a limited presence near its headquarters in Berlin,” stated CEO Niklas Estberg.
Business sale in Japan scheduled for the first quarter of 2022
The decision is a U-turn after the company declared in May that it will return to its home market, less than three years after selling its local companies to Dutch rival Just Eat Takeaway.com NV.
According to Estrberg, Japanese companies began operations in September of last year and grew into a mid-tier competitor in the country. In the first quarter of 2022, the business wants to start selling its Japanese operations.
“We see a lot of chances in a lot of places. “The returns we see in Germany and Japan are a little limited for us to invest in these prospects, and a lot has changed since our launch,” Estberg explained.
Uber Technologies Inc. stated the specific relevance of its delivery service in Germany at about the same time Delivery Hero revealed the intention of returning to the home market. DoorDash Inc., the leading company in the United States, recently started in Germany, although Eat has led the Market place since 2018.