Deliveroo to stop operating in Germany, amid stiff competition for food-delivery services in Europe’s largest economy.
In emails to customers Monday, the company said that it would no longer be delivering in the country from Aug. 16. A spokesman for London-based Deliveroo confirmed the move to Bloomberg.
The European food-delivery industry has long suffered from expensive competition and established players have been consolidating to fight back against newer startups. Takeaway.com NV agreed to buy the German businesses of Delivery Hero SE last year, and Britain’s Just Eat Plc and Takeaway.com NV of the Netherlands are now pursuing an all-share 5 billion-pound ($6 billion) combination, to become Just Eat Takeaway.com NV.
Deliveroo hasn’t ruled out returning to the German market in the future, according to a person familiar with the matter. It will refocus its resources to grow its business in other parts of Europe and the Asia-Pacific region. Job losses for employees, riders and restaurants will be compensated, the person said.
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