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Delivery Hero Will Expand In Germany Following Return To Berlin

Delivery Hero Will Expand In Germany Following Return To Berlin
After quitting its home market of Germany three years ago, the delivery platform Delivery Hero has re-entered the market and is now set to expand its business there. On Tuesday, the company said that it would be rolling out its food and grocery delivery services in more German cities this autumn which is expected to further increase competition in the segment. 
Founded about a decade ago, the company currently has its business operations in more than 50 countries around the world. In 2018, it had exited its home city of Berlin with its CEO Niklas Ostberg selling off the company’s German operations to Just Eat Takeaway in a deal worth $1.1 billion.
In a re-launch of the business in Berlin in May, Ostberg had announced the intention to expand to other cities of the country. Now that the company has set up and operationalization of its food delivery and quick commerce markets in the capital city, the company now wants to roll out its businesses in the cities of Frankfurt, Hamburg, and Munich this autumn.
"The pace of our expansion will definitely accelerate," Artur Schreiber, Delivery Hero's head of German operations, told the media in an interview.
A number of newer and well-funded startups in Germany and other markets that run networks of 'dark stores' with the ability to dispatch groceries ordered on a smartphone app to the doorstep within minutes is posing a strong challenge to the established players of the sector such as Delivery Hero.
The sector could undergo a shakeup with the slowing of the pace of growth expects analysts and predicted that there can be an industry consolidation started by Delivery Hero, which is a member of Germany's DAX blue-chip share index, which has built equity stakes in a number of its peers which can be used for acquisition bids.
A stake of 5.09 per cent in the company had been taken up by Delivery Hero, the British-based online food delivery company Deliveroo disclosed on Monday.
Delivery Hero reports second-quarter results on Thursday.

Christopher J. Mitchell

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