Deliveroo pulls out of Germany amid stiff competition

A Deliveroo worker unloads his bicycle as he makes a delivery in London. (Reuters pic)

LONDON: Deliveroo will stop operating in Germany, amid stiff competition for food-delivery services in Europe’s largest economy.

In emails to customers Monday, the company said that it would no longer be delivering in the country from Aug 16.

A spokesman for London-based Deliveroo confirmed the move to Bloomberg.

“At Deliveroo we’re on a mission to create the very best food delivery service in the world, and at the heart of this is offering a service that works brilliantly for our customers, riders and restaurants,” Deliveroo said in its message to its customers.

“Where we cannot do this to the level that we expect and you deserve, we won’t operate. Therefore, Deliveroo’s focus will now be on growing our operations in other markets around the world.”

The European food-delivery industry has long suffered from expensive competition and established players have been consolidating to fight back against newer startups. NV agreed to buy the German businesses of Delivery Hero SE last year, and Britain’s Just Eat Plc and NV of the Netherlands are now pursuing an all-share £5 billion (US$6 billion) combination, to become Just Eat NV.

Deliveroo hasn’t ruled out returning to the German market in the future, according to a person familiar with the matter.

It will refocus its resources to grow its business in other parts of Europe and the Asia-Pacific region. Job losses for employees, riders and restaurants will be compensated, the person said.

In May, Deliveroo said it had secured US$575 million in funding from Inc and other investors.