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Deliveroo exits Germany

Deliveroo has decided to exit the German market. The UK on-demand food delivery platform will cease trading in the region on 16 August 2019, according to a report by the FT.

A Deliveroo spokesperson said: “We want to thank all of the riders and restaurants who worked with Deliveroo in Germany, as well our wonderful customers. It has been an honour to serve so many people amazing food from Germany’s many great restaurants and to work with so many brilliant, hard-working riders.

“We are grateful to our extremely talented employees for their commitment to bringing fantastic foods to people’s homes, and they will be supported in this period. Deliveroo will continue to grow and invest in markets across the world, seeking to become the world’s definitive food company.”

While Deliveroo will be leaving Germany, the company noted that it is doubling down on growth in other territories around the world. It plans to refocus investment to grow in its markets across Europe and Asia Pacific.

The news comes shortly after the $10 billion merger between Just Eat and Takeaway.com, creating one of the world’s biggest online food delivery firms. John Reily, VP global commerce strategy at Publicis Sapient, argued the strategic deal between the two European-born companies is further evidence that consolidation is on the rise in the food delivery sector.

Competition is fierce in online food delivery, with acquisitions, mergers and partnerships commonplace. Last week, Uber reported its biggest-ever loss, but its food delivery brand, Uber Eats, saw a significant increase and is likely to become a larger part of Uber’s business going forward.

Last month, UK grocer Sainsbury’s announced a tie-up with the food company to deliver fresh pizzas from in-store kitchens to customer’s homes. As well as hot pizzas, Sainsbury's customers on Deliveroo will have the opportunity to purchase sweet and savoury snacks, and sides, salads, dips, and drinks.

The Co-op has also been trialling selling alcoholic drinks and confectionery via Deliveroo since 2018, while Asda recently expanded its partnership with Just Eat.

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