Foodpanda in Discussions to Sell its Asian Division, Grab a Potential Buyer

According to MARKETING-INTERACTIVE, Delivery Hero, the Berlin-based owner of online food and grocery delivery company foodpanda, is discussing a potential sale of its Asia business. The deal is still being negotiated, but it has been reported that the tech platform Grab could pay up to a billion euros for the unit.

"Delivery Hero confirms negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asian markets," the company said in a statement. "Any discussions or plans are still in their preliminary stages."

The news that talks were underway caused shares in foodpanda to lift as much as 13.5%, according to Reuters. Delivery Hero, on the other hand, reported that it has achieved a positive adjusted profit before interest, tax, depreciation and amortisation (EBITDA) margin of 0.2% in Q2 2023 after group cost allocation earlier this month.

Despite difficult comparable numbers, the group reported that its Asia segment returned to positive GMV growth of 2% year on year.

The announcement comes shortly after foodpanda announced a partnership with some of Singapore's largest supermarket chains to expand local shopping options on the platform.

As part of the agreement, foodpanda users will now be able to shop for nearly 20,000 grocery items from Cold Storage, CS Fresh, and Giant across the island at the same price as in-store and with delivery within an hour. They will also be able to earn yuu Points on foodpanda transactions made at over 20,000 Singapore restaurants and merchants.