Delivery Hero, the German on-demand delivery company, is taking its food delivery service out of Germany once more.
At the same time, it has stated that it will quit the Japanese market in Q1 of next year by divesting Foodpanda Japan.
“Scaling down our operations in Germany and planning to divest our Japanese business have not been easy decisions. Facing a very different reality now than we did entering these markets, it is with a heavy heart that we need to pursue other growth opportunities with larger potential.”Niklas Östberg, CEO and co-founder, Foodpanda
“Despite having built up two fantastic foodpanda teams showing great progress, it has become increasingly difficult to create true value for our ecosystem in these countries. I have nothing but gratitude and admiration for the accomplishments both teams have achieved in the last months. Seeing the amazing service they built from scratch makes me genuinely proud, and we will do everything we can to support our fellow Heroes on their journey ahead.”Niklas Östberg, CEO and co-founder, Foodpanda
Although that announcement also signaled that it might be having difficulties keeping consumers – Delivery Hero said it would be renewing Foodpanda’s identity, creating a new app with an improved user experience, and extending a reward program, among other things.
In the end, it’s shutting down a commercial delivery service in Germany. It leaves just a Berlin-based R&D center where it says it’ll test new services and features, so it sounds like it’ll keep running some (trial) deliveries in Central Berlin for personnel working on new product development.