The website of food delivery service Delivery Hero.
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Delivery Hero, the renowned German online food delivery company, announced on Friday its acquisition of full ownership of its Saudi subsidiary in a transaction valued at $297 million.
In this deal, Delivery Hero has purchased the remaining 37% stake in HungerStation, the operator of Delivery Hero in Saudi Arabia. This move demonstrates the Berlin-headquartered company’s commitment to expanding its reach within the Middle Eastern food delivery market.
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During afternoon trade, shares of Delivery Hero experienced a decline of 1.4%.
“We firmly believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition, and potential, and we are dedicated to contributing to its ongoing success through HungerStation,” stated Niklas Östberg, CEO and Co-Founder of Delivery Hero.
Delivery Hero is recognized as one of Europe’s largest food delivery companies, with a market value of $10 billion.
The company encountered challenges in its home market of Germany and was compelled to withdraw in December 2021, ultimately losing out to Netherlands-based Just Eat Takeaway.com.
The food delivery sector is fiercely competitive, with numerous companies vying for dominance. As a result, consolidation is inevitable, and many firms are acquiring competitors to establish a larger presence.
HungerStation, as stated by Delivery Hero, facilitates connections between over 10,000 partners, including restaurants and grocery stores, and its customers.
This acquisition will strengthen Delivery Hero’s relationship with HungerStation and the rest of its portfolio, the company added.
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