German food delivery service acquires a competitor in Asia

Foodservice is increasingly popular among single, young urban consumers and dual-income households

German food delivery

German food delivery service acquires a competitor in Asia. Source: unsplash.com

According to GlobalData, Germany-based Delivery Hero has bought South Korea’s top food delivery app Woowa for about $4 billion. The acquisition is in line with Hero’s strategy to expand leadership in the Asia-Pacific (APAC) region.

The research says that Asian share in the global foodservice delivery market is expected to grow by 4% in two years. The number of transactions in the delivery takeaway market in APAC stands at 14.6 billion in 2018, expected to reach 18.6 billion by 2022.

The calculative move by Hero comes at a time when the European foodservice (delivery) market has become hyper-competitive and triggered a wave of strategic consolidation and rising valuations. For instance, Delivery Hero sold its German operations to Takeaway.com NV in 2018 and now Takeaway is in a bidding war with Naspers Ltd. spinoff Prosus NV for British app Just Eat Plc
Shagun Sachdeva, Consumer Insights Analyst at GlobalData

South Korea is one of the world’s biggest online food delivery markets. GlobalData reveals that the country carried out 813.1 million transactions in terms of delivery takeaway, expecting to reach 942.5 million by 2022.

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