FILE PHOTO: A biker wearing a Deliveroo backpack drives in the central Barcelona, Spain, July 23, 2019. REUTERS/Albert Gea
LONDON (Reuters) – British food delivery service Deliveroo will cease operations in Germany on Friday and turn its attention to other markets, a spokesman for the Amazon-backed company said on Monday.
The withdrawal of Deliveroo – which says it has 1,100 riders in five cities and just under 100 employees in Germany – reduces competition for Dutch rival Takeaway.com, which last year agreed to buy larger competitor Delivery Hero’s business in the German food delivery market.
Deliveroo’s decision comes as Takeaway.com and British rival Just Eat have just finalised the terms of their deal to create a global food delivery company that will be a market leader in Britain, Germany, the Netherlands and Canada.
“We’ve decided to focus on other markets,” a Deliveroo spokesman said regarding Germany, adding that the company was not ruling out returning to Europe’s largest economy in the future.
Deliveroo will shift its resources and investment towards boosting growth and expanding in markets around Europe and the Asia-Pacific region, the spokesman said.
Deliveroo said “appropriate compensation and goodwill packages” would be available for riders, employees and restaurants.
Reporting by Georgina Prodhan in London and Alexander Huebner in Munich; Writing by Tom Sims and Michelle Martin; Editing by Susan Fenton