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Takeaway.com, the Dutch online food delivery marketplace has recently announced that it has acquired Delivery Hero’s Germany businesses in return for €930 million cash and an equity stake in the company. As per the agreement, Delivery Hero will be retaining an 18% stake in Takeaway.com. With that being said, Delivery Hero will use this capital to expand its international food delivery operations outside of Germany.
It’s worth mentioning, Takeaway.com is already active in Germany with its brand Lieferando.de and this transaction, which comprises the Lieferheld, Pizza.de and foodora brands in Germany, will enable Takeaway.com to offer an enhanced proposition for both consumers and partner restaurants.
This rapid growth happened for Takeaway.com, a couple of years ago when listed on Euronext Amsterdam. This online food delivery marketplace priced its shares at €23 each ($25.82), giving the company an enterprise value of around €849 million and a market cap of around €993 million.
Subsequently, the online orders grew 38 % to 6 million orders on the back of the company’s acquisition of Just Eat’s Dutch operations. To be more specific, the number of German orders grew by 40 percent in the third quarter of this financial year compared to the same quarter last year. While the company accumulated 5,828 orders last year, it has reached 8,159.
On top of that, Takeaway growth hacking in the German market made the struggle for dominance pretty fierce with another market leader in the industry Delivery Hero, so the company has finally acquired the competition itself. Having said that, Takeaway.com’s management expects to generate material synergies to exceed €60 million by 2020.
In the first nine months of 2018, Delivery Hero’s Germany businesses recorded 23 million orders, Gross Merchandise Value (“GMV”) of €462 million and revenues of €76 million, which represents an increase of 13%, 16% and 16% respectively from the previous year.
This compares to Takeaway.com’s German orders of 23 million, GMV of €471 million and revenues of €60 million for the similar period of 2018. As a result of the combination, the pro-forma entity would account for 47 million orders, €932 million of GMV and €136 million of revenue for the first nine months of 2018.
Founded in 2000 and headquartered in Amsterdam, Takeaway.com is focused on connecting consumers and restaurants through its platform in 10 European countries, Israel and Vietnam. With the Takeaway.com app, customers can order from any local restaurant. Users can either pay either by cash, PayPal or credit card.
So far, Takeaway has raised around €86 million in two funding rounds led by Prime Ventures, Macquarie Group. The company is focused on connecting consumers and restaurants through its platform. With 31,000 connected restaurants, mainly delivery restaurants, Takeaway offers a wide variety of food choices.
On the other hand, Delivery Hero is a worldwide network of online food ordering sites, operating in 21 countries and with over 73,000 restaurant partners. Founded in Berlin in 2011, Delivery Hero has raised a total of $2.6B in funding over 15 rounds. This Berlin-based online food ordering sites is one of few unicorns and also did a successful IPO in 2017. Also, Delivery Hero is expecting revenue between €1.08 billion and €1.15 billion for 2019.
Jitse Groen, CEO, and founder of Takeaway.com, said:
This transaction provides Takeaway.com with a stronger proposition for both consumers and partner restaurants in the German market. It also allows Takeaway.com to operate on a larger and essential scale in building a profitable online food delivery business. Although the transaction almost doubles Takeaway.com‘s orders in Germany, there is still ample growth ahead, given that penetration of online food delivery in Germany is amongst the lowest in Europe. We look forward to welcoming Delivery Hero as a shareholder.
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