Delivery Hero, one of Europe’s largest online food delivery companies, is doubling down on its presence in the Middle East through a significant $297 million deal. The German firm announced its acquisition of the remaining 37% stake in HungerStation, its Saudi Arabian subsidiary, with the aim of expanding its footprint in the Middle Eastern food delivery market.
This strategic move comes as Delivery Hero seeks to capitalize on the growing potential and opportunity in Saudi Arabia and align itself with the country’s ambitious 2030 vision. HungerStation, which operates under Delivery Hero in Saudi Arabia, is seen as a key asset in the company’s efforts to contribute to the success and development of the Kingdom.
Despite its endeavours in the Middle East, Delivery Hero has faced challenges in its home market of Germany. In December 2021, the company was compelled to exit the German market after losing out to the Netherlands-based Just Eat Takeaway.com. As a result, the company is now prioritizing expansion and growth opportunities in other regions, with the Middle East being a prominent focus.
As the online food delivery industry becomes increasingly competitive, consolidation has become an inevitable trend. Numerous companies in the sector are seeking to achieve scale and enhance their market positions by acquiring competitors or consolidating operations. The $297 million deal with HungerStation reinforces Delivery Hero’s commitment to building stronger ties with its subsidiaries and broadening its portfolio of services.
HungerStation, as Delivery Hero’s subsidiary in Saudi Arabia, serves as a vital link between more than 10,000 partners, including restaurants and grocery stores, and their customers. This network provides an extensive and diverse range of food and grocery options for Saudi consumers, enhancing the overall delivery experience.
With a market value of $10 billion, Delivery Hero’s strategic focus on the Middle East signals the company’s confidence in the region’s potential for growth and its determination to seize opportunities in the evolving food delivery landscape. By strengthening its presence in Saudi Arabia through HungerStation, Delivery Hero is positioning itself for further expansion and market leadership in the Middle East.
The $297 million Saudi deal represents a significant milestone for Delivery Hero, underlining its commitment to becoming a dominant force in the global food delivery market. As the company continues to navigate through competitive challenges in various regions, its strategic investments and expansion efforts in the Middle East will likely play a pivotal role in shaping its future success and growth trajectory.