Deliveroo’s exit from Germany will allow it to refocus on more lucrative operations, says GlobalData
Deliveroo is turning its attention towards its more lucrative markets in a bid to hold on to global market share, as its competitors continue to make gains worldwide, says GlobalData.
The move is set upon the backdrop of the merger between Just Eat and Takeaway.com, which will create a new global market leader in the food delivery market, aiming to see off competition from the likes of Uber, Deliveroo and Amazon.
The context for Deliveroo pulling out from Germany can be seen in Takeaway’s acquisition of Delivery Hero in early 2019, giving Takeaway.com a 17% share of the German market. Now, the planned merger between JustEat and Takeaway.com seeks to create not only a behemoth in Germany, but also in the wider global delivery market.
GlobalData estimates that the global delivery market will rise from $171bn to $213bn by 2022, representing an annual growth of 5.6%, but Deliveroo’s place in this market remains uncertain.