Deliveroo Exits Hong Kong Under Pressure From Meituan’s App

Olivia Solon and Yazhou Sun

Mon, Mar 10, 2025, 3:35 AM 3 min read

(Bloomberg) -- Deliveroo Plc volition adjacent its Hong Kong concern aft anemic income and mounting contention successful the metropolis weighed connected the company’s planetary division.

Most Read from Bloomberg

• NJ College to Merge With State School After Financial Stress

• Trump Administration Plans to Eliminate Dozens of Housing Offices

• Where New York City's Zoning Reform Will Add Housing

• Buffalo’s Billion-Dollar Freeway Fix Is connected Ice, But Not Because of Trump

• Inside the ‘Not Architecture’ of High Line Designers Diller Scofidio + Renfro

The London-based transportation institution volition merchantability immoderate assets to rival Foodpanda, owned by Delivery Hero SE, and adjacent different assets, it said successful a connection connected Monday. The app volition stay progressive successful Hong Kong until April 7.

Deliveroo has faced stiff contention and terms wars successful Hong Kong from Foodpanda and KeeTa, a subsidiary of Chinese nutrient transportation elephantine Meituan. Success successful China has fto Meituan grow aggressively, with increasing operations crossed Asia and the Middle East wherever it typically enters markets with steep discounts. The Chinese ace app’s stock terms has much than doubled successful the past 12 months to springiness it a marketplace worth of much than HK$1.06 trillion ($136 billion).

Deliveroo shares roseate 2% to 127.6 pence astatine 10:30 a.m. successful London trading giving it a marketplace worth of £1.96 cardinal ($2.5 billion). Delivery Hero shares fell 1.3% successful Frankfurt. Meituan shares fell 4.7% successful Hong Kong.

KeeTa launched successful Hong Kong successful 2023 and rapidly took marketplace stock done dense promotions. Deliveroo had focused connected higher-end restaurants with premium prices and struggled to thrive there. The metropolis is “one of the astir discount delicate markets successful Deliveroo’s portfolio,” and KeeTa was capable to “muscle it retired of the marketplace done discount spend,” according to analysts astatine Panmure Liberum.

What Bloomberg Intelligence Says:

Deliveroo’s merchantability of portion of its Hong Kong concern to Delivery Hero’s Foodpanda and closure of the remainder reflects marketplace consolidation amid aggravated contention from Meituan’s KeeTa and Foodpanda. KeeTa’s 2023 introduction with heavy pockets fueled a terms war, squeezing retired Deliveroo. As portion of a broader strategy to exit unprofitable markets, this determination aligns with Deliveroo’s absorption connected profitability and currency travel successful a marketplace operating astatine an Ebitda loss.

— Tatiana Lisitsina, BI retail analyst

KeeTa’s mean bid worth for nutrient transportation is astir HK$120, that’s astir HK$60 little than Foodpanda and Deliveroo’s orders, according to Measurable AI, an analytics steadfast that tracks receipts. Deliveroo’s Chief Executive Officer Will Shu had ruled retired moving “endless promotions” to vie successful Hong Kong earlier this twelvemonth aft contention dragged down fourth-quarter show astatine the company’s planetary division.