UK food delivery firm Deliveroo exits Germany
UK food delivery firm Deliveroo is stop its German operations as it looks to focus on other markets in Europe, a spokesman for the Amazon-backed company has told Reuters.
The firm will shutter its app in Germany from August 16th.
The firm has 1,100 German riders and 100 employees in the country, and said that appropriate compensation and goodwill packages would be available for riders, employees and restaurants.
For comparison, the UK has around 15,000 Deliveroo riders.
Rival firm Takeaway.com, which recently merged with London-based Just Eat, has agreed to buy competitor Delivery Hero’s business in the German food delivery market.
The Takeaway.com merger is valued at £9bn, and will be headquartered in Amsterdam in the Netherlands.
The Deliveroo spokesman said that the firm had decided to focus on other markets, but is not ruling out a return to Germany in its future.
For now, the firm will shift its resources and investment towards growth in European and Asia-Pacific markets, as it see rapid growth in UK and France.
The company said it also plans to double its operating Spanish cities to 60 this year.