Are you seeking a faster, better, and more reliable delivery service?
Delivery Hero has just announced their acquisition of Foodfly, an innovative Korean delivery service, expanding their reach in the Asian market. Discover how you can benefit from this cutting-edge technology.
Delivery Hero, the leading global online food delivery marketplace, has announced that it has acquired 100% of shares in South Korean food delivery service Foodfly’s parent company Flyfuku. This move marks Delivery Hero’s continued expansion in Asia.
Delivery Hero is already leading the food delivery markets in Germany and other European countries. Now by acquiring Foodfly—a pioneer in the Asian market—it will further strengthen its presence in Asia and create a platform from which some of its global partners will be able to enter and expand into South Korea’s rapidly growing market.
Foodfly was introduced by startup incubator Metanix in 2017, and with its unique business model successfully entered markets like Seoul, Busan, Daegu, Gwangju and Daejeon. The acquisition will bring Delivery Hero closer to achieving its ambition to become the biggest online marketplace for instant meals delivery worldwide.
What is Delivery Hero?
Delivery Hero is an online food ordering and delivery service based in Berlin, Germany. Founded in 2011, Delivery Hero operates in over 40 countries worldwide, including countries across Europe and Asia. As of 2020, the company has over 600 million customers and 35 million monthly orders. It is one of the world’s leading food delivery platforms offering a wide selection of services from global restaurant chains to local favorites. Delivery Hero delivers delicious meals worldwide to wherever customers are located – be it their home or office.
In addition to food delivery, Delivery Hero offers delivery discounts, loyalty programs and detailed nutrition information for each product on the platform. This helps customers make healthier choices when ordering their favorite dishes and easily determine dietary needs. Furthermore, with its advanced technology such as Machine Learning algorithms, Delivery Hero provides an efficient service that simplifies planning meals and avoids unnecessary food waste.
The organization has transformed the global food delivery industry by introducing innovations such as cashless payments, dynamic pricing models and real-time order tracking options. By acquiring companies across different industries including finance and software engineering, Delivery Hero is diversifying its business portfolio allowing it to move beyond just delivering food orders to quickly integrating into each region’s digital ecosystem. To further expand its reach in Asia, Delivery Hero recently announced its acquisition of Foodfly – shows a Korean meal delivery service that operates for consumers within Korea’s capital city Seoul metropolitan area and other nearby cities such as Daejin-Si and Chuncheon-Si.
What is Foodfly?
Foodfly is a Korean-based delivery service that has rapidly scaled up since its inception in 2014. The company specializes in delivering high-quality food from popular restaurants and franchises to its customers in Korea. It offers various services including online ordering, real-time tracking of orders, same-day delivery and a loyalty program.
As part of Delivery Hero’s acquisition agreement with Foodfly, the two companies will combine their strengths to strengthen their foothold in the South Korean market. As part of this agreement, Delivery Hero also received a controlling stake in Food fly’s parent company, Day2Day Korea Co Ltd.
The combined presence in Asia represents an opportunity for Delivery Hero and Foodfly to expand into new markets. Delivery Hero operates in 30 countries, including Japan and Singapore, while Foodfly offers services throughout South Korea. With this agreement comes access to over 1000 restaurants and more than 500 hotels across South Korea that utilize the delivery service provided by Foodfly.
In addition to leveraging each others’ success on a larger scale, this merger allows both companies to offer customers unique food experiences, convenience, and reliability when it comes to food delivery.
Benefits of the Acquisition
The acquisition of Korean delivery service Foodfly is set to bring multiple new benefits to Delivery Hero. It will expand Delivery Hero’s reach in Asia and bolster its existing portfolio by adding Foodfly’s innovative inventory and logistics technology.
This acquisition also increases Delivery Hero’s presence in the high-growth market of South Korea and provides access to additional resources for regional expansion. In addition to this, the acquisition comes with complete control over a fully-scaled delivery fleet and food network.
These advantages make Delivery Hero a more competitive and powerful player in the global food delivery industry.
Delivery Hero’s Expansion Strategy
Delivery Hero is continuing its move into the Asian market by acquiring Foodfly, a Seoul-based food delivery service. The German startup is one of the leading online and mobile food ordering services providers across Europe and Asia. This latest move is part of their aggressive expansion strategy. Through this strategic move, Delivery Hero will expand its footprint across Asia, strengthening its position in South Korea with an even larger presence there.
Delivery Hero’s CEO and founder Niklas Östberg said in a statement that the acquisition of Foodfly was “an important step” in Delivery Hero’s global expansion strategy in to strengthen its market position throughout Asia. As part of the acquisition, the entire Foodfly team will join Delivery Hero’s existing team in South Korea, giving it a powerful base to operate globally. The terms of the deal were not disclosed.
With this acquisition, Delivery Hero continues to build a strong presence across Asia, as it already operates services in Malaysia Thailand and Japan. Combining deliverables from multiple sources within restaurant delivery service apps such as FoodPanda or Deliveroo DeliverHero can offer millions more customers access to local restaurants at competitive prices. This marks yet another big move for Delivery Hero which has recently expanded internationally with operations across four continents and more than 35 countries worldwide.
Delivery Hero announces acquisition of Korean delivery service Foodfly
The acquisition of Foodfly marks Delivery Hero’s foray into the Asia-Pacific region in a big way. This move will make Delivery Hero the leading global online food delivery service as it looks to expand in a highly fragmented yet potentially lucrative market.
Delivery Hero’s acquisition of Foodfly has immeasurable implications for the food delivery industry. The expansion into Asia further cements Delivery Hero’s status as one of the largest food delivery companies in the world, and no doubt other companies will be scrambling to position themselves in the region.
This move brings with it great opportunities, not only for Delivery Hero but also for other stakeholders such as local restaurants, customers and investors. For example, with increased market share and wider global reach, restaurants can benefit from wider customer bases beyond their geographical location. In contrast, customers stand to gain better access to their favorite meals even when they are abroad.
If all goes well, investors will also be attracted by Delivery Hero’s expansion plans, expecting higher returns on their investments. Indeed, this new venture will surely disrupt the food ordering ecosystem in Asia by providing both affordability and convenience driven by technology advancements while taking customer-centricity to greater heights.
Conclusion
The acquisition of Foodfly marks Delivery Hero’s latest move to expand its presence in Asia. Through the transaction, Delivery Hero strengthens its foothold in South Korea and accelerates its global growth strategy.
The Foodfly acquisition is an important milestone for Delivery Hero and it is expected that further online food delivery services will be added to its already impressive portfolio soon. With Delivery Hero’s combination of technological prowess, experience, and resources to make fast-paced moves, a large global presence is within the company’s reach.
Resources
Delivery Hero has acquired Foodfly, a Korean food delivery service, in its latest move to expand its presence in the Asian market. The acquisition of Foodfly will add a new dimension to Delivery Hero’s growing network of businesses operating in different countries across the region, and give customers access to more choices.
With the acquisition of Foodfly, Delivery Hero now boasts a portfolio of over 530 restaurants and more than 6.6 million customers across Korea. Delivery Heroes is now present in 18 countries, with more expansion plans announced soon.
The resources required to seal this deal successfully included personnel such as legal professionals skilled in M&A processes and negotiation techniques; specialised industry advisors with local market knowledge; IT resources for integrating platforms and technical complexities; financial advisors/experts when deciding on appropriate price structures; communications teams to control media messaging around the announcement and to ensure customer trust; and human resources for working on staff transition issues post-acquisition. Additionally, securing external funding (such as venture capital investments or financial loans) may also have been required to complete this transaction.
