Food delivery company Delivery Hero fully acquires its Saudi subsidiary HungerStation

Delivery Hero fully acquires Saudi subsidiary HungerStation: German online food delivery company Delivery Hero has acquired all outstanding minority shares in its Saudi subsidiary, HungerStation, which operates Delivery Hero in Saudi Arabia, for USD 297 mn, according to a press release. The shares amounted to a 37% stake, giving Delivery Hero sole ownership of the Saudi subsidiary. The move aims to strengthen the company’s presence in the Middle Eastern food delivery market. Enterprise Logistics was unable to reach representatives from Delivery Hero or Hunger Station ahead of dispatch.

A boon for HungerStation’s operations: The acquisition will see Delivery Hero strengthen HungerStation’s ties with its ecosystem through exchanging knowledge and tech integration, the press release said.

An M&A trend in the F&B delivery sector? The highly competitive food delivery industry has witnessed a trend of consolidation, with numerous companies acquiring rivals to enhance their size and reach, CNBCreports

About DeliveryHero: Founded in 2011, the company operates in more than 70 countries across Asia, Europe, Latin America, the Middle East, and Africa, and is currently one of the biggest delivery companies in Europe, with a USD 10 bn valuation. The company faced difficulties in its home country and ultimately had to exit in December 2021 after ceding ground to Netherlands-based Just Eat Takeaway.com.

About HungerStation: HungerStation is a leading food delivery player in Saudi Arabia and Bahrain, and currently connects more than 20k partners, including restaurants and grocery stores, with customers. The company saw its revenues rise a significant 36% to EUR 609 mn in FY 2022, and achieved a positive EBIT, the press release said.