Oda, Norway’s largest online grocery delivery provider, has announced that it is ‘phasing out’ its food delivery service in Germany.
Oda commenced operations in Berlin in mid-February this year and built up a network of 18,000 customers and a turnover of €15 million.
‘Demanding’ Capital Market
However, Oda CEO Karl Munthe-Kaas said in a statement that the level of turnover generated in Germany is not sufficient for it to become profitable quickly enough in the country’s “demanding” marketplace.
Oda noted that it plans to invest in its logistics and distribution technology, and it is therefore phasing out its food delivery service in Germany.
‘Efficient Infrastructure’
“Oda has the world’s most efficient logistics and distribution technology for online grocery shopping,” commented Munthe-Kaas. “Going forward, we want to utilise this strength and offer logistics services to German grocery companies which either have an existing online store or want to build it up.
“This is the best way to develop a new and efficient infrastructure in this sector, without having to make large investments in a tight capital market.”
The last day of delivery for customers in Germany will be 30 June, Oda noted. Its operations in Norway will continue as before.
Investment
In December, Oda reported that it had raised NOK 1.5 billion (€140 million) in a round of funding from investment companies Kinnevik, Verdane and Summa Equity.
The latest funding valued Oda at NOK 3.5 billion (€330 million) – less than half the NOK 7.5 billion (€710 million) at which it was valued during a similar round in April 2021.
At the time, the business – which tuned a profit in Norway in 2021 – noted that it planned to adjust its ‘costly’ international growth ambitions.
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