Delivery Hero’s Culinary Conquest: A Full Plate with HungerStation

A Culinary Power Move

In the ever-evolving world of food delivery, giants are always on the move. A prominent player, Delivery Hero has made headlines with its latest acquisition.

Delivery Hero has unveiled its ambitious plan, sealing a deal worth $297 million. The objective? To fully acquire HungerStation, a leading food delivery platform in Saudi Arabia.

HungerStation: The Crown Jewel

HungerStation isn’t just another acquisition for Delivery Hero. It’s the most significant food delivery platform in Saudi Arabia. With its strong position and reputation, HungerStation is a valuable asset in food delivery.

While some might wonder about the rationale behind such a significant investment, Delivery Hero’s intentions are clear. They’re not just buying a company but investing in a vision. The Kingdom of Saudi Arabia’s 2030 vision, to be precise. Niklas Ostberg, the Chief Executive and Co-Founder of Delivery Hero expressed the company’s belief in the Kingdom’s ambition and potential. Their goal? To contribute to its success through HungerStation.

The Financials: A Glimpse into the Numbers

As we await Delivery Hero’s Q2 results next month, the consensus hints at a loss of €2.02 per share, a notable improvement from the €5.64 per share loss a year ago. But here’s a silver lining: HungerStation reported revenue of €609 million in fiscal 2022, marking a roughly 36% increase. With over 10,000 partners connected, it’s evident why Delivery Hero sees immense value in this acquisition.

While Delivery Hero might have faced competition from Eat Takeaway in its home market of Germany in 2021, its commitment to expanding in the Middle East remains unwavering. This acquisition is a testament to that dedication. And with a market cap shy of $11 billion, Delivery Hero’s global aspirations are evident.

What’s Next for the Food Delivery Titan?

With the acquisition of HungerStation, Delivery Hero aims to strengthen the ties between the platform and its broader ecosystem. The company’s shares have surged, gaining approximately 35% since their year-to-date low in late March. The future looks promising, with plans to further integrate and innovate the food delivery experience.

In the grand banquet of food delivery, Delivery Hero has added a significant dish to its spread with HungerStation. As the company continues to expand and innovate, food enthusiasts and investors alike can look forward to a delightful journey ahead.

The article is “Delivery Hero is spending big to Expand in the Middle East.“