Deliveroo, the delivery platform hailing from the United Kingdom, has announced the suspension of its services in Hong Kong starting from April 7th. They will be divesting a portion of their assets to Foodpanda.
The delivery market in Hong Kong is fiercely competitive, with rivals like Foodpanda and KeeTa. The latter being a subsidiary of Meituan, a major player in the delivery service industry in China. Meituan entered the Hong Kong market in 2023 and quickly rose to become the second largest player.
Deliveroo’s business in Hong Kong accounts for approximately 5% of its total revenue. While the platform’s main market is in Europe, it also operates in other Asian markets such as Singapore and the United Arab Emirates.
Source: Bloomberg
TLDR: Deliveroo is closing its operations in Hong Kong and selling some assets to Foodpanda due to intense competition in the market.
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