Delivery Hero Eyes $450M IPO Amid Food Delivery Market Boom
Europe’s Food Delivery Giant Prepares for Frankfurt Listing
Following a wave of consolidation in the on-demand food delivery sector, industry leaders are now turning to public markets to fuel their next phase of growth. Hot on the heels of Blue Apron’s NYSE filing, Berlin-based Delivery Hero has announced plans for a $450 million IPO on the Frankfurt stock exchange.
Key Details of the Planned IPO
- Funding Target: $450 million through new and existing share sales
- Major Stakeholders:
- Rocket Internet SE (35% ownership)
- Naspers (10% stake acquired for €387M/$450M)
- Potential Valuation: ~$4.5 billion based on recent investments
Delivery Hero’s Market Position
The company currently operates in 40 countries across Europe, Asia, Latin America, and the Middle East, positioning it as:
- One of Europe’s largest internet startups
- Larger than GrubHub’s $3.8 billion market cap
- A global player with significant scale advantages
Growth Strategy and Competitive Landscape
CEO Niklas Östberg outlined the company’s aggressive expansion plans:
“We want to grow as fast as we can and profitability comes with size.”
Recent strategic moves include:
- Acquisition of Kuwait’s Carriage
- Purchase of Foodpanda and Turkey’s Yemeksepeti
- Heavy reinvestment of Naspers’ funding
Financial Performance and Market Trends
| Metric | Delivery Hero (2016) | Blue Apron (Q1 2017) |
|---|---|---|
| Revenue Growth | 68% ($136M) | 42% ($245M) |
| Adjusted EBITDA | -$130M | -$52.2M (quarter) |
Industry Challenges:
- Rising competition from Amazon and other deep-pocketed players
- Recent shutdowns of SpoonRocket, Maple, and Sprig
- Need for continuous innovation to maintain market position
What This IPO Means for the Sector
The success of Delivery Hero’s offering will serve as:
- A bellwether for investor appetite in food tech
- A potential turnaround opportunity for Rocket Internet
- Validation of the capital-intensive growth model
As Östberg noted in a McKinsey interview:
“If we don’t stay innovative and don’t stay the best…then in the long term we are in trouble.”
With both Delivery Hero and Blue Apron going public, 2017 is shaping up to be a pivotal year for the food delivery industry’s maturation.
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