Top story
Deliveroo is planning to exit its lossmaking Hong Kong operations via a sale of some of the assets to Delivery Hero’s Foodpanda and closure of other parts of the business.
The group, announcing its decision on the London Stock Exchange this morning, said it had nominated liquidators to manage closure of the Hong Kong business and the remainder of its assets in “the most efficient way possible”.
It added there were several dynamics specific to the Hong Kong market that led the board to consider strategic options and that it had decided it would not serve shareholders’ best interests to continue to operate in the country.
In 2024, Hong Kong represented 5% of group gross transaction value and had a five percentage point negative impact on international GTV growth. The market remains adjusted EBITDA negative.
Deliveroo Hong Kong’s platform will remain live until 7 April 2025.
Deliveroo chief operating officer Eric French said: “We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved in our operations in Hong Kong.
“We have been proud to serve so many people such amazing food over the past nine years.”
Shares in Deliveroo popped 2% higher to 127.6p as markets opened.
This week in the City
The big news this week is set to come in the form of annual results from the John Lewis Partnership on Thursday, while embattled Asda is expected to release Q4 figures on Friday.
There is also the latest retail sales figures from BRC-KPMG due out tomorrow morning.
Real estate investor Supermarket Income REIT also reports interims tomorrow and Domino’s Pizza puts out preliminaries.
Thursday will see Deliveroo publish full-year results alongside booze group C&C.
No comments yet