British online food delivery company Deliveroo will pull out of the Hong Kong market next month, after nine years.
It told customers it was unable to provide a “great service,” while a press release said continued operations in Hong Kong did not serve their shareholders.
“We wanted to let you know that we’ve taken the tough decision to close our business in Hong Kong,” the company said in an email to customers on Monday. “This was not an easy decision and one we have not taken lightly… Deliveroo cannot continue to offer the great service to customers, restaurants and riders that we always aim for and so our final day of operations in Hong Kong will be 7th April.”
Deal with competitor
In a Monday statement to riders, the company added that it had nominated liquidators and April 7 will be the last day for accepting orders.
The company said it had “entered into a deal with [rival] foodpanda” as part of its commitment to support its riders.
In a separate press release, Deliveroo said it would sell “certain assets to foodpanda” and closed other assets.
“There are several dynamics specific to the Hong Kong market which led the Board to consider strategic options and, given the Group’s commitment to disciplined capital allocation, determine that it would not serve shareholders’ best interests to continue to operate in Hong Kong,” it also said.
“In 2024, Hong Kong represented 5% of Group GTV [Gross Merchandise Value] and had a 5 percentage point negative impact on International GTV growth.”
A Monday statement from foodpanda’s parent company, Delivery Hero, confirmed that it would acquire select assets from Deliveroo.
“Deliveroo customers and couriers in Hong Kong will be redirected, and certain vendors will be onboarded to the foodpanda platform,” it said.
“This will expand foodpanda’s offering, providing customers with access to a broader selection of restaurants and grocery businesses, including some previously only available on the Deliveroo platform. Vendors will also benefit from access to a larger customer base.”
Founded in 2013, Deliveroo was working with 182,000 restaurants, grocers and retailers as of August 2024, according to The Times. The London-based company operates in 10 markets worldwide.
Its Initial Public Offering (IPO) in 2021 was deemed “disastrous” by Bloomberg.
Other than Deliveroo and foodpanda, the Hong Kong market is currently also served by Keeta.
Retail pull-outs
Last month, US-based sandwich chain EggSlut said it would pull out of the city. Last year, Outback Steakhouse closed nine of its 19 branches citing operational costs and “current market conditions.”
Among the other brands which exited Hong Kong last year were health product chain CR Care, Flash Coffee, Garrett Popcorn, lifestyle brand Paul & Joe, and DCH Food Mart.
MCL Cinemas Plus+ Plaza Hollywood closed last December – the seventh local cinema to shutter in 2024.
According to the Census and Statistics Department, restaurant earnings fell by 1.3 per cent year-on-year to HK$26.7 billion in the third quarter of 2024.
