Deliveroo is exiting the Hong Kong market after nine years, selling its assets to rival Foodpanda. Photo: Dickson LeeDeliveroo, an on-demand food delivery platform, will exit the Hong Kong market next month due to tough competition.
The company said on Monday that its Hong Kong service would end on April 7, bringing a nine-year run in the market to a close.
“We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved in our operations in Hong Kong,” Deliveroo chief operating officer Eric French said.
“We have been proud to serve so many people such amazing food over the past nine years.”
The company will sell some of its assets to rival Foodpanda.
Deliveroo is closing less than two years after mainland Chinese rival Meituan’s Keeta entered the Hong Kong market and obtained a significant share.
Deliveroo said it had lost money in the city last year and needed to look after shareholders’ best interests.
A Deliveroo spokesman said it encouraged its riders to join Foodpanda. For those without a Foodpanda account or who were inactive recently, Foodpanda will offer delivery walkers an incentive of HK$200 to join its platform and HK$500 for those using vehicles upon completion of their first 10 orders.
Delivery drivers deserve our empathy
“For employees, the company is offering everyone an enhanced redundancy payment going beyond government statutory requirements,” the spokesman said without revealing the number of workers and riders affected.
Foodpanda, a unit of Berlin-based Delivery Hero, said the deal meant Deliveroo customers and riders would be moved onto the Foodpanda platform along with some restaurants and grocery shops.
“This transaction will give customers on the Foodpanda platform access to a wider range of restaurant and grocery businesses, including some only available on the Deliveroo app,” it said.
“Vendors joining the platform will be able to tap into a new customer base to boost their long-term success.”
Foodpanda, which has operated in the city for 10 years, said it had decided to further invest in the market and was committed to maintaining a sustainable delivery ecosystem that provided the best value for its customers, couriers and business partners.
Hong Kong’s food delivery sector has been on a roller-coaster ride in the past decade. After Foodpanda and Deliveroo expanded their presence in the city, Uber Eats pulled out of the market in 2021.
This was despite Covid-19 pandemic-related lockdowns fuelling demand for food deliveries.