Germany-based online food delivery company Delivery Hero is set to close its global tech hubs in Turkiye and Taiwan.
Additionally, the company is considering reducing its workforce at its Berlin headquarters.
Delivery Hero in a statement said, “While we believe that this is a necessary step as our business enters the next stage of its maturity, it does mean we will be letting go of employees who have made many valuable contributions in their time with us.”
The company had previously implemented a 13% workforce reduction at its Berlin headquarters and global service roles earlier this month. The exact number of employees impacted by its latest decision has not been disclosed.
The company is prioritizing profitability and aiming to sustain the confidence of its investors, which has waned following a pandemic-induced surge.
In September 2023, there were reports suggesting that Delivery Hero explored options to partially divest its Asian business to the Singapore-based tech company Grab.
The initial report on the deal came from the German weekly business news magazine Wirtschaftswoche.
While the ultimate value of the deal is still being negotiated, Wirtschaftswoche’s report suggests that Grab might pay slightly over €1 billion ($1.07 billion) for the unit.
The food delivery company intends to divest operations under the Foodpanda brand in Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, and Thailand.
In July 2023, Delivery Hero completed the acquisition of the remaining 37% stake in its Saudi Arabian subsidiary, HungerStation, for €267.3 million.
HungerStation, linking over 10,000 partners with customers, has positioned itself as a prominent player in the region’s food delivery landscape.
In the fiscal year 2022, HungerStation recorded a revenue increase of 36%, reaching €609 million, and achieved positive earnings before interest and taxes, which include group costs exceeding €50 million.
