16 hours Ago
LONDON: Food delivery giant Deliveroo has revealed it is to pull out of Hong Kong in April after nine years. The UK-based group said it has agreed the sale of some parts of the Hong Kong business to rival Delivery Hero’s Singapore-based Foodpanda, without revealing financial details of the deal. It said it is also shutting other parts of the Hong Kong business, with liquidators appointed to manage the process "in the most efficient way possible.
” The group’s ordering platform will remain live until April 7. "There are several dynamics specific to the Hong Kong market which led the board to consider strategic options and, given the group’s commitment to disciplined capital allocation, determine that it would not serve shareholders’ best interests to continue to operate in Hong Kong,” Deliveroo said. The group’s Hong Kong arm – which represented 5% of group-wide sales by gross transaction value (GTV) last year – remains loss-making on an underlying earnings basis, according to the firm.
It dragged international GTV down by five percentage points last year, it added. 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.
” – dpa.
