Deliveroo has shut down its Hong Kong operation after nine years, selling some of its assets to Singapore-based rival Foodpanda.
The speedy delivery company is the latest to retreat from the international markets, after rival Just Eat exited France and New Zealand last year, while Getir pulled out of the US and Europe to focus on home country Turkey.
In a stock exchange update issued on Monday, Deliveroo said its Hong Kong business represented 5% of the London-listed company’s GTV (gross transaction value) but remained loss-making.
The update reads: “There are several dynamics specific to the Hong Kong market which led the board to consider strategic options and, given the group’s commitment to disciplined capital allocation, determine that it would not serve shareholders' best interests to continue to operate in Hong Kong.”
Deliveroo said it had sold parts of its Hong Kong business to Foodpanda, which is owned by German multinational Delivery Hero. Deliveroo did not provide any further details of the sale.
Shares in Deliveroo rose more than 2% following the announcement, rising to 128p in early morning London trading.
Deliveroo has sought to cut costs by exiting underperforming markets, hitting the eject button in European countries like Germany, Spain and the Netherlands.
Sifted approached Deliveroo for comment.
