Delivery Hero announces German expansion plans in challenge to Just Eat

(Sharecast News) - Delivery Hero unveiled plans to enter the German market in summer with its foodpanda brand.
The food-delivery giant said it would start with a 'soft-launch' in Berlin, in June, followed by an expansion throughout the country by the end of 2021.

News of its plans sent shares of London-listed rival Just Eat down 7.1% at 6,331.0p, although Delivery Hero stock was also lower despite the news, erasing 4.81% to €108.8.

Delivery Hero's chief executive officer, Niklas Ostberg, highlighted what he said was a change in customer demand in recent years which now presented "a clear opportunity to bring back our superior service to the German market."

A beta-test in the German capital in June will be followed by an official launch on 10 August, with Delivery Hero planning to roll out its full offer and aiming for delivery in as little as seven minutes via its app.

Foodpanda was already present in over 10 countries across Europe and Asia.

Besides restaurant food, Delivery Hero would aim to bring groceries and convenience items to the home in as fast as seven minutes.

"Based on what we develop for customers in other countries, we know that our product offering is exceptional," Foodpanda Germany boss, Artur Schreiber, said.

"We are therefore convinced that we can add value to the full ecosystem. We will now focus on building our German operations from scratch on the back of a powerful and well-established platform, creating new business opportunities for shops and restaurants."