Delivery Hero is spending big to expand in Middle East

July 21, 2023 09:08 AM PDT | By Invezz

Delivery Hero is spending big to expand in Middle East — Image source: Invezz

Delivery Hero to fully take over HungerStation

On Friday, the food delivery company said it’s taking full ownership of HungerStation.

Delivery Hero is spending $297 million to purchase the remaining 37% stake in its Saudi subsidiary. Niklas Ostberg – Chief Executive and Co-Founder of the Berlin-headquartered firm said in a press release today:

We believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition, and potential, and are committed to contributing to its ongoing success through HungerStation.

Delivery Hero is expected to report its Q2 results next month. Cons e nsus is for it to lose €2.02 a share versus €5.64 per share a year ago.

HungerStation is largest platform in the Kingdom

Delivery Hero is one of the largest food delivery companies in Europe with a market cap of just under $11 billion. In the press release, the online food ordering service also said today:

Its [HungerStation] strong position and reputation makes it a valuable asset. Taking sole ownership will allow Delivery Hero to build stronger ties between HungerStation and rest of its ecosystem.

In fiscal 2022, HungerStation generated €609 million in revenue – up roughly 36%. The largest food delivery platform in the Kingdom connects over 10,000 partners.

Wall Street currently has a consensus “overweight” rating on shares of Delivery Hero that have gained roughly 35% since its year-to-date low in late March.

The post Delivery Hero is spending big to expand in Middle East appeared first on Invezz.

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