Delivery Hero the take out food service that recently acquired Foodpanda announced that it is selling its UK business to its rival, Just Eat. At closing, Delivery Hero will receive a Base Purchase Price of £200 million payable in cash. A further cash consideration of up to £40 million may be payable, subject to the performance of hungryhouse between signing and closing of the transaction, Delivery Hero noted.
Just Eat also announced that it is going to acquire SkipTheDishes, a delivery startup in Canada. Both the deals come within five days of Delivery Hero acquiring Foodpanda.
Just Eat is really getting strong the food delivery business, recently the company became one the first to deliver food using robots. The company worked closely with Star Technologies and created a self-driving delivery robot, in an aim to conserve energy and cut down on regular delivery charges.
David Buttress, CEO of Just Eat commented: “The UK has long been an engine of growth for Just Eat. While we have significantly expanded internationally in recent years, we have remained focused on building a high growth, sustainably profitable business domestically. Through this transaction, we would extend our market presence in the UK and sustain high levels of growth given the considerable opportunity in this market.”
Just Eat bought the number one take out company in Canada, SkipTheDishes for £66M and plans to strengthen that position with the acquisition.
“Canada is a phenomenally exciting country for online food delivery, with significant runway for growth and a clear opportunity to drive channel shift. SkipTheDishes’ outstanding team, technological know-how and operational excellence has enabled it to develop a business model well-suited to Canada’s unique market conditions. It will complement our existing operations so that Just Eat is best-placed to address this fast-growing market”, David Buttress, CEO of Just Eat said in a statement.
Just Eat went public in the year 2014, the London based company reports that they satisfy the needs of 17 million users and cover over 63,900 take-out restaurants.