Delivery Hero

From Wikipedia, the free encyclopedia

Delivery Hero SE
TypePublic
FWB: DHER
DAX Component
IndustryOnline food ordering
Founded2011; 10 years ago (2011)[1]
FounderNiklas Östberg
Kolja Hebenstreit
Lukasz Gadowski
Markus Fuhrmann
HeadquartersBerlin, Germany
Area served
Worldwide
ServicesFood delivery
Revenue€1.238 billion (2019)
Owner
Number of employees
24,617 (2019)
Websitewww.deliveryhero.com

Delivery Hero SE is a European multinational online food-delivery service based in Berlin, Germany. The company operates in 50+ countries internationally in Europe, Asia, Latin America and the Middle East and partners with 500,000+ restaurants.[5] Delivery Hero has increasingly branched out beyond food delivery, and is a leading player in the emerging category of quick commerce, which delivers small batch orders in under an hour.[6]

Delivery Hero processed more than 666 million orders in 2019.[7] [8]

While Delivery Hero is headquartered in Germany with offices worldwide, as a "gig economy company" (akin to Meituan, Uber or Airbnb) nearly all of the company's deliveries are carried out by workers using bicycles and cars, dispatched via the company's smartphone apps.

In general, and in contrast to recent legal precedents in Canada[9] and Australia, Delivery Hero does not classify these couriers as employees. This policy has led to ongoing legal battles and labour disputes, and may be linked to the shutdowns of Delivery Hero's operations in several countries.[10]

History[]

Delivery Hero Holding was founded in Berlin by Niklas Östberg, Kolja Hebenstreit, Markus Fuhrmann and Lukasz Gadowski in May 2011, with the goal of turning Delivery Hero into a global online food ordering platform.[11][12] Under the leadership of Niklas Östberg and Fabian Siegel, Delivery Hero first expanded to Australia and the United Kingdom in 2011. In early 2012 the enterprise acquired Lieferheld in Germany and acquired a stake in Foodarena, Switzerland.[13]

Delivery Hero then raised €25 million in new funding to finance acquisitions in four European countries: Sweden, Finland, Austria and Poland. In August 2012 Delivery Hero started expanding in both South Korea and China through YoGiYo and Aimifan[14] and the Asian expansion continued in 2013 when Delivery Hero increased investment in TastyKhana following a successful cooperation period.[15]

In 2012 and 2013, the harsh competition between the various delivery service online portals led the German press to dub the events as cyberwar between the big web-portals. There were reports of frequent Denial-of-service attack against each portal, accusations of data stealing as well as numerous lawsuits of the portals against each other. Delivery Hero was one of the more aggressive actors, and in 2012, the Delivery Hero office in Berlin was raided by police and the prosecution pressed charged against the Delivery Hero management. Delivery Hero was prosecuted for perpetrating DoS attacks against its competitors and stealing data from the other web services.[16][17]

In 2014 Delivery Hero acquired a controlling stake in Latin American market leader PedidosYa[18] and in August 2014 the group acquired German market leader and rival, pizza.de.[19][20]

According to TNW Tech5 2014, Delivery Hero was one of Germany's top 3 fastest growing start ups at that time.[21]

In April 2015, Delivery Hero acquired South Korean delivery service Baedaltong, one of the chief competitors of its own YoGiYo service. One month later Delivery Hero bought the Turkish competitor Yemeksepeti for 530 million Euro, which was the largest acquisition in this business sector to date.[22] In October 2015 Delivery Hero also acquired Munich-based food delivery service Foodora from Rocket Internet.[23]

Im May 2015 the company acquired the largest food delivery player in Greece.[citation needed]

On 10 December 2016 Delivery Hero acquired Foodpanda, a company valued at an estimated $3 billion at that time.[24]

In December 2016, the company announced the sale of its UK business Hungryhouse to Just Eat for at least £200m. However, the deal needed to be cleared by the Competition and Markets Authority of the UK before completion.[25] On 12 October 2017, the CMA gave preliminary approval for Just Eat to acquire its smaller rival.[26]

Delivery Hero went public in a listing on the Frankfurt Stock Exchange on 30 June 2017. The listing was the largest by a European technology business in almost two years. Delivery Hero raised almost €1bn from the offering.[27]

In December 2018, Delivery Hero sold their German operations to Takeaway.com.[28]

The German stock exchange Deutsche Börse announced on 19 August 2020 that Delivero Hero will replace Wirecard in Germany's leading index DAX.[29][30]

In August 2020 Delivery Hero acquired for 360 million dollars, the largest price ever commanded by a Greek startup.[31] The deal has also resulted in a big win for founders and investors, and the two Venture Capital firms who invested early on in Instashop.[32]

Investment[]

In November 2011, Delivery Hero received its first investment funding. In this financing round Team Europe, Holtzbrinck Ventures, Tengelmann Ventures, Kite Ventures and ru-Net together invested €4 million.[33] The second funding round took place in April 2012. This time the existing investors raised their investments by €25 million to support the international growth of the enterprise. In August 2012 Delivery Hero received an additional €40 million funded primarily by Kite Ventures and Kreos Capital.[34] A Series D financing round saw Delivery Hero receive $30 million from Phenomen Ventures in the latest Series D financing round.[35]

In January 2014 Delivery Hero announced a Series E financing of $88 million led by Insight Venture Partners.[36] A further $85m followed in April 2014 and was used to strengthen Delivery Hero's presence in core markets.[37]

In September 2014 a further $350m of investment was secured from existing partners and Swedish fund Vostok Nafta.[38] This was the largest investment in a European start up since 2009.[39] In December 2014 the company raised another €287 Million from Rocket Internet. The total investment size by Rocket Internet was €496 Million in primary and secondary for a 30% stake in Delivery Hero.[40] Three months later Rocket Internet increased its stake in Delivery Hero to 39%. In February 2018, Rocket Internet reduced its stake in Delivery Hero. As per the latest happening, the shareholding of Rocket Internet in Delivery Hero has reduced from 24.3% to 21.2%.[41]

In January 2017, CEO Niklas Östberg announced that he wanted his company to be ready for an IPO in the second quarter of that year. Delivery Hero would focus on the integration of the recently acquired competitor Foodpanda. According to manager magazin, he was aiming at a valuation of about 3.5 billion Euros.[42]

In May 2017 Naspers, a global internet and entertainment group and one of the world's largest technology investors, invested EUR 387 million in Delivery Hero. After increasing its stake in September 2017, Naspers today holds a stake of app. 26% in Delivery Hero, and so became the largest shareholder of the company.[43]

In December 2017, Delivery Hero led the Series B funding round of Rappi, the largest on-demand delivery company in Latam, operating in 5 countries with over 30,000 couriers. Delivery Hero invested $105M and now holds a stake of 20%, becoming the largest shareholder of the company and bringing Niklas Oestberg to its board of directors.[44] Despite this investment, Rappi will continue to operate as an independent company for the time being.[45] Furthermore, the company is also an investor in Glovo.

In March 2021, the Dutch investment giant Prosus increased its stake in Delivery Hero by 8.2% to 24.99%, through its Dutch subsidiary MIH Food Holdings, making it effectively the largest shareholder in Delivery Hero.[46] Prosus is the international internet assets division of Naspers.[47] In the same month, Delivery Hero finalized the $4 billion acquisition of Woowa Brothers, which operates Baedal Minjok, South Korea's largest food delivery company.[48]

Acquisitions[]

Delivery Hero was very active in M&A, the company's acquisitions include:

  • 2011: Hungryhouse (UK)
  • 2012: Lieferheld (Germany), OnlinePizza (Sweden), PizzaPortal (Poland), Pizza-Online (Finland)
  • 2014: PedidosYa, Clickdelivery (Latin America), Pizza.de (Germany), Baedaltong (Korea)
  • 2015: Talabat (MENA), Yemeksepeti (Turkey), e-food (Greece), Damejidlo (Czech Republic), foodora
  • 2016: foodpanda (Asia)
  • 2017: Otlob ( Egypt) ,Carriage (MENA), Appetito24 (Latin America), Foodfly (South Korea)[49]
  • 2018: Hipmenu (Europe), Netcomidas (Bolivia)
  • 2019: Foody (Cyprus),[50][51] Zomato food delivery business (MENA), DeliveryRD (Dominican Republic)
  • 2020: (MENA), Glovo (Latin America)
  • 2021: Woowa Brothers (South Korea)

Financial figures[]

Year Revenue (Mio. €) EBITDA[52]
(Mio. €) 		Ø Staff Source
2013 42 -26 547 [53]
2014 88 -70 1018 [53]
2015 200 -174 2843 [54]
2016 297 -107 6848 [55]
2017 544 -190 12882 [56]
2018 655 -100 16627 [57]
2019 1,238 -431 22515 [58]

Criticism[]

Classification of couriers as independent contractors[]

In contrast to Delivery Hero's 2018 annual report, which includes "riders" as employees,[59] Delivery Hero's national subsidiaries (Foodora, Foodpanda, etc.) usually classify their workers as independent contractors and not employees. This classification frees Delivery Hero from responsibilities towards its workers, including the right to workers' compensation, sick leave, overtime, unemployment benefits, hazard pay, and protections against wrongful termination of employment or firing.

Pro-employee rulings and subsequent shutting-down of Foodora in Australia and Canada[]

Couriers working for Delivery Hero's brands have mounted campaigns to assert their rights, including several successful legal battles. In Australia and Canada, these campaigns led to DH subsidiary Foodora's shutdown in the countries.

In each case, Foodora maintained that the shutdowns were carried out in response to market forces. However, Delivery Hero's 2018 Annual Report shows that the company does indeed assess country-by-country the costs and risks of government policies including social security, stating:

"Country specific and economic requirements, including employment legislation and social security, increase the complexity of the rider management as part of the own delivery services. The constant analysis of regulatory developments is needed to find the best approach in advancing the logistics business. Non-compliance with regulatory requirements may lead to higher rider costs and possible non-compliance fines. This also includes the risk of unavailability of rider personnel restraining the further expansion of the logistic services. This risk is considered as medium."[59]

Australia[]

In 2018 Foodora Australia abruptly shut down operations while facing several lawsuits: including one from the country's Fair Work Ombudsman which accused the company of sham contracting,[60] and several court cases relating to unpaid benefits and wrongful dismissal.

The Transport Workers Union subsequently accused Foodora of shutting down to “avoid responsibility for paying its riders millions of dollars in backpay as a result of wage theft.”[61]

Canada[]

In 2019, Foodora couriers Montreal and Toronto began organizing. Subsequently, with the support of the Canadian Union of Postal Workers, , a group of couriers in Ontario, organized a vote on whether or not to unionize with the CUPW. Foodora Canada then challenged the vote prior to the announcement of results, on the basis that Foodora couriers were independent contractors and therefore did not have the right to unionize.

The Ontario Labour Relations Board then ruled that Foodora was misclassifying couriers as independent contractors, and, in a decision which was widely considered a win for couriers, ordered Foodora to consider its couriers "dependent contractors", a new category which affords workers some of the rights of employees.[62] The decision only applied to couriers in Ontario, but was considered to be precedent setting.

In April 2020, two months after Ontario Labour Relations Board decision, Foodora Canada announced that it was shutting down, citing oversaturation of the Canadian market.[63]

Monopolistic behaviour[]

Talabat and , both of which owned by Delivery Hero, were sued by the Kuwait (CPA) in 2019 after they refused to pay fines totalling more than 5 million KWD (~$16.5 million) due to their monopolistic acts in their contracts with restaurants.[64]

References[]

  1. ^ "About us". Delivery Hero SE. Retrieved 21 December 2018.
  2. ^ "Shareholder Structure".
  3. ^ Jump up to: a b "Shareholder Structure".
  4. ^ Jump up to: a b c "DELIVERY HERO SE : Shareholders Board Members Managers and Company Profile | DE000A2E4K43 | MarketScreener".
  5. ^ Delivery Hero Stakeholder Press Release, "500k Restaurants Globally" https://www.deliveryhero.com/500k-restaurants-globally/
  6. ^ "Podcast: Quick commerce – the future of e-commerce". DMEXCO. Retrieved 23 February 2021.
  7. ^ Delivery Hero 2019 Annual report (PDF), retrieved 30 March 2020
  8. ^ Delivery Hero generates 66% revenue growth in the first six months of 2017, retrieved 26 September 2017
  9. ^ "Foodora couriers win right to join a union in an 'historic precedent' for gig economy workers". thestar.com. 25 February 2020. Retrieved 28 April 2020.
  10. ^ Press, Australian Associated (2 August 2018). "Foodora condemned for closing Australian operation during back pay dispute". The Guardian. ISSN 0261-3077. Retrieved 28 April 2020.
  11. ^ "Kurzmitteilungen: Delivery Hero, commercetools, chocri, Startup Weekend Nürnberg, Niklas Zennström". 14 November 2011.
  12. ^ Ternès, Anabel (24 August 2018). International Digitalization Trends: And how pioneering companies implement them. ISBN 9783960915034.
  13. ^ Brenneisen, Malte; Eversmeier, Jochen, Lieferhelden greifen an, archived from the original on 31 August 2012, retrieved 22 September 2012
  14. ^ Fowler, Nina, Delivery Hero takes on Asia's giant, China, archived from the original on 22 September 2012, retrieved 22 September 2012
  15. ^ "Delivery Hero invests $5m in India's TastyKhana". 13 June 2013. Archived from the original on 6 February 2016. Retrieved 11 October 2016.
  16. ^ Henryk Hielscher. "Pizza Inferno - Die Cyberschlacht der Essens-Portale" [Cyber battle between the food-portals] (in German). Wirtschaftswoche. Retrieved 12 October 2016.
  17. ^ Veit Medick; Marcel Rosenbach. "Cyberkrieg der Pizzaboten" [Cyberwar of the pizza delivery men] (in German). Der Spiegel. Retrieved 12 October 2016.
  18. ^ "Uruguay's PedidosYa Acquired By Delivery Hero, Expands Network to 20 Countries - Endeavor". 28 June 2014. Archived from the original on 30 June 2015. Retrieved 11 October 2016.
  19. ^ Lunden, Ingrid. "Delivery Hero Joins The $1B Valuation Club As It Gobbles Rival Pizza.de". Retrieved 11 October 2016.
  20. ^ "Lieferheld schluckt Pizza.de" [Delivery Hero swallows Pizza.de] (in German). Süddeutsche Zeitung. Retrieved 12 October 2016.
  21. ^ Laive, Patrick de (11 April 2014). "Tech5: Here's Europe's Fastest Growing Tech Companies". Retrieved 11 October 2016.
  22. ^ "Delivery Hero kauft türkischen Wettbewerber" [Delivery Hero buys Turkish competitor] (in German). Handelsblatt. Retrieved 12 October 2016.
  23. ^ On-demand food delivery service foodora merges with Delivery Hero's Urban Taste and breaks into the global market, retrieved 19 September 2015
  24. ^ "Delivery Hero acquires Foodpanda as Rocket Internet shuffles online takeout pack once again. Arabia".
  25. ^ Wood, Zoe (15 December 2016). "Just Eat online takeaway service pays £200m for UK rival Hungry House". The Guardian. ISSN 0261-3077. Retrieved 30 June 2017.
  26. ^ Lynch, Russell (13 October 2017). "Just Eat gets go-ahead to swallow Hungryhouse". Evening Standard. Retrieved 14 October 2017.
  27. ^ "Delivery Hero's valuation surpasses $5B following successful IPO". Techcrunch. Retrieved 30 June 2017.
  28. ^ "Takeaway.com beats Delivery Hero in battle for German dominance". CNBC. 21 December 2018. Retrieved 22 December 2018.
  29. ^ "Aktienmarkt: Delivery Hero steigt in den Dax auf". www.handelsblatt.com (in German). Retrieved 19 August 2020.
  30. ^ "Delivery Hero enters the DAX - Germany's leading stock market index". uk.finance.yahoo.com. Retrieved 19 August 2020.
  31. ^ https://www.ekathimerini.com/256318/article/ekathimerini/business/delivery-hero-buys-instashop-for-305-million-a-record-sum-for-a-greek-startup
  32. ^ https://www.menabytes.com/instashop-acquisition-jabbar-venturefriends/
  33. ^ "When Delivery Hero was young: the early years". 13 July 2016. Retrieved 11 October 2016.
  34. ^ "Delivery Hero sammelt weitere 40 Millionen Euro ein". 27 August 2012. Retrieved 11 October 2016.
  35. ^ Lomas, Natasha. "Delivery Hero Tops Up Series D With $30M As Its Global Take-Out Service Heads For Profit". Retrieved 11 October 2016.
  36. ^ "Delivery Hero Secures $88M Series E, Aims to Conquer European Online Delivery Space -". 16 January 2014. Retrieved 11 October 2016.
  37. ^ Lunden, Ingrid. "Delivery Hero Gobbles Another $85M To Fuel A Price War With Just-Eat". Retrieved 11 October 2016.
  38. ^ "Delivery Hero raises $350m for global growth". Financial Times. Retrieved 9 March 2017.
  39. ^ Basich, Zoran. "The Daily Startup: The Biggest European Venture Capital Rounds Ever". Retrieved 11 October 2016.
  40. ^ Germany, SPIEGEL ONLINE, Hamburg. "Essen auf Rädern: Samwer-Brüder investieren halbe Milliarde in Essenszustellung". Retrieved 11 October 2016.
  41. ^ "BRIEF - Rocket Internet says it reduced its stake in Delivery Hero". Reuters. 23 February 2018. Retrieved 2 March 2018.
  42. ^ Philipp Alvares de Souza Soares, Jonas Rest. "Delivery Hero will vor Börsengang tiefstapeln". manager magazin. Retrieved 11 February 2017.
  43. ^ "Naspers invests another $775M in food take-out giant Delivery Hero". Techcrunch. Retrieved 28 September 2017.
  44. ^ "Rappi Series B SEC Form D Filling". Securities and Exchange Commission. Retrieved 6 March 2018.
  45. ^ "This delivery app puts a courier on every corner". Bloomberg. Retrieved 6 March 2018.
  46. ^ Magubane, Khulekani. "Prosus digs in on Delivery Hero stake". Fin24. Retrieved 9 April 2021.
  47. ^ Laura He. "Tencent's main shareholder Prosus nets $15 billion from record stock sale". CNN. Retrieved 9 April 2021.
  48. ^ "Delivery Hero welcomes Woowa to the group – all closing actions taken | Delivery Hero". www.deliveryhero.com. Retrieved 1 September 2021.
  49. ^ "Delivery Hero on Techcrunch". Techcrunch. Retrieved 10 November 2017.
  50. ^ "Sinka llc | Cyprus on the startups map – "Foody" acquired by giant "Delivery Hero"". Retrieved 23 August 2021.
  51. ^ "Foody acquired by Delivery Hero Group". Foody Blog. 4 September 2019. Retrieved 23 August 2021.
  52. ^ EBIT (operating result) per Gewinn- und Verlustrechnung zuzüglich Abschreibungen (depreciation, amortization and impairment) per Kapitalflussrechnung, ohne weitere Bereinigungen
  53. ^ Jump up to: a b Geschäftsbericht 2014 der Delivery Hero Holding GmbH
  54. ^ Geschäftsbericht 2015 der Delivery Hero Holding GmbH
  55. ^ Geschäftsbericht 2016 der Delivery Hero Holding GmbH
  56. ^ [1] der Delivery Hero Holding GmbH
  57. ^ [2]
  58. ^ "Always Delivering an Amazing Experience" (PDF). Delivery Hero. 22 April 2020. Retrieved 22 August 2020.
  59. ^ Jump up to: a b "Delivery Hero Annual Report 2018" (PDF).
  60. ^ "Australia – Food courier faces legal action over the employment status of its drivers (ABC.net.au)". www2.staffingindustry.com. Retrieved 27 April 2020.
  61. ^ "'It has been a privilege'". NewsComAu. 2 August 2018. Retrieved 27 April 2020.
  62. ^ Cantwell, Kandy. "3 Facts You Didn't Know About Dependent Contractors". blog.montridge.com. Retrieved 27 April 2020.
  63. ^ "App-based food-delivery giant Foodora announces exit from Canada". thestar.com. 27 April 2020. Retrieved 27 April 2020.
  64. ^ "Settlement offer from Talabat and Carriage refused". Arab Times. 17 November 2019. Retrieved 11 May 2021.

Further reading[]

External links[]

Retrieved from ""