What is Foodpanda?
Foodpanda is Rocket Internet’s global food delivery service, present in 22 countries, 500 cities with a strong footprint in Asia. The company has raised $318 million in funding since its inception and will now be sold to rival Delivery Hero.
What does Rocket Internet get for Foodpanda?
Stock in Delivery Hero, which gives the German conglomerate a total of 37.7%. They previously paid $586 million for a 30% stock in February of last year.
If calculations are done backwards:
- $586 million for 30% = 19.5% million per 1%
- Foodpanda sold to Delivery Hero for 7.7% additional stake roughly equals $150 million
- The company was sold for half the price of its total $318 million funding
Rocket Internet SE said the combined business will process more than 20 million orders a month and operate in 47 countries.
What is Delivery Hero?
Delivery Hero Holding GmbH is an online food-delivery service based in Berlin, Germany. The company launched in 2011 and now operates in 33 countries internationally in Europe, Asia, Latin America and the Middle East and partners with 300,000 restaurants.
Why did they sell Foodpanda?
According to TechCrunch source,
Foodpanda has slashed the asking price for its Indonesia operations to basically zero after more than a year of unsuccessfully trying to offload it.
The company is reevaluating its entire business across [Southeast Asia], and it has already made tentative efforts to sell in some countries. The company expanded in Asia via a series of acquisitions, which, in many cases, ironically leaves it without obvious suitors.
With more on-demand services like Go-Jek and LINE Man offering delivery services, how will the combined company fare? Tweet us with your answer @ecomIQ.