Delivery Hero to expand in Germany after Deliveroo investment

FILE PHOTO: Delivery Hero's logo is pictured at its headquarters in Berlin

Berlin-based company Delivery Hero has announced that it is to rollout its food and grocery delivery services in more German cities this autumn.

The move comes after it announced buying a 5.9 per cent stake in rival delivery company Deliveroo.

Delivery Hero was originally founded in Berlin a decade ago, but three years ago ceased operations in the German capital after selling its operations in the country to JustEat for $1.1bn.

CEO Niklas Ostberg made the decision in 2018 to focus on the Asia market.

However, following its Berlin relaunch in the spring, the company has now announced that it plans to expand into the rest of Germany.

Frankfurt, Hamburg and Munich are thought to be the next cities that Delivery Hero plans to move into.

“The pace of our expansion will definitely accelerate,” Artur Schreiber, Delivery Hero’s head of German operations, told Reuters.

The move follows a strong week for Delivery Hero, in which they saw their investment into Deliveroo already garner strong results.

Deliveroo shares jumped by 10 per cent, their highest since trading began, on Monday after it was announced that a stake had been bought by their German rival.

On Monday Deliveroo disclosed that it received a notification “of major holdings in the company’s shares from Delivery Hero after market close on 6 August 2021,” pushing share prices to highs of £3.60.

Delivery Hero reports its second-quarter results on Thursday.