Deliveroo Retreats From Germany

  • General
  • August 12, 2019
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  • 4 minutes read
Deliveroo CEO Will Shu

image: Web Summit on Flickr

Food delivery startup Deliveroo has said it would stop delivering in Germany on the 16th of August. The London-based startup made this known in an e-mail to its German customers. “This was not an easy decision and one we have not taken lightly,” the e-mail said, also stating that its [Deliveroo’s] focus will be on “growing our operations in other markets around the world”.

In a statement to TechCrunch, a Deliveroo spokesperson said the company intends to refocus resources and investment to speed up growth in other markets across Europe and Asia-Pacific. Deliveroo had already halted deliveries in a number of smaller German cities last year. At the time, it said it would focus on Munich, Hamburg, Frankfurt, Berlin and Cologne. According to The Telegraph, Deliveroo is laying off 100 employees as part of its exit.

The reason for Deliveroo’s retreat is not clear, but may be related to heightened competition in the German food delivery market. Not long ago, UK-based Just Eat and agreed to a $10 billion deal to merge and create what would be one of the world’s biggest food delivery companies, with leading market share in several markets, including Germany. Competing with such firm, alongside several others, wouldn’t be easy despite Deliveroo being well funded, with $1.5 billion raised since inception.

Deliveroo has said it does not rule out returning to the German market in future time, although it expressed a likewise sentiment when it pulled out of several German cities last year.

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