Delivery Hero pulling plug on Chinese operation
Delivery Hero has decided to end its investment in its Chinese business Waimai Chaoren. In a statement issued on Wednesday (2 March), the food delivery specialist said: “The company based its decision on the unique competitive situation in China that has become anything but sane with competitors flooding the markets with free food to users without charging commission from restaurants.
“Under these circumstances Delivery Hero feels that the amount of investment required is incalculable. The Chinese market as it has evolved over the last 12 months doesn’t fulfill the investment criteria of Delivery Hero anymore.”
Niklas Östberg, the CEO of Delivery Hero, added: “There are fights worth fighting, for us, this is not one of them and we will be divesting our business over next couple of months.”
Delivery Hero added that Waimai Chaoren currently employs 400 people – but did not elaborate on what the future holds for them.