12 August 2019 13:47
(Bloomberg)--Deliveroo will stop operating in Germany, amid stiff competition for food-delivery services in Europe's largest economy. In emails to customers Monday, the company said that it would no longer be delivering in the country from Aug. 16. A spokesman for London-based Deliveroo confirmed the move to Bloomberg. "At Deliveroo we're on a mission to create the very best food delivery service in the world, and at the heart of this is offering a service that works brilliantly for our customers, riders and restaurants," Deliveroo said in its message to its customers. "Where we cannot do this to the level that we expect and you deserve, we won't operate.
Therefore, Deliveroo's focus will now be on growing our operations in other markets around the world." The European food-delivery industry has long suffered from expensive competition and established players have been consolidating to fight back against newer startups. Takeaway.com NV agreed to buy the German businesses of Delivery Hero SE last year, and Britain's Just Eat Plc and Takeaway.com NV of the Netherlands are now pursuing an all-share 5 billion-pound ($6 billion) combination, to become Just Eat Takeaway.com NV. Deliveroo hasn't ruled out returning to the German market in the future, according to a person familiar with the matter. It will refocus its resources to grow its business in other parts of Europe and the Asia-Pacific region. Job losses for employees, riders and restaurants will be compensated, the person said. In May, Deliveroo said it had secured $575 million in funding from Amazon.com Inc. and other investors.--With assistance from Sarah Syed. To contact the reporters on this story: Nate Lanxon in London at [email protected];Stefan Nicola in Berlin at [email protected] To contact the editors responsible for this story: Giles Turner at [email protected], Rebecca Penty For more articles like this, please visit us at bloomberg.com ©2019 Bloomberg L.P.