British meal delivery company Deliveroo said that it will exit its Hong Kong operations by selling some assets to Delivery Hero's foodpanda for an undisclosed amount, and by closing other assets.
'There are several dynamics specific to the Hong Kong market which led the board to consider strategic options and ... determine that it would not serve shareholders' best interests to continue to operate in Hong Kong,' Deliveroo said in a statement.
The company's operations in Hong Kong were loss making and accounted for about 5% of overall transactions.
Deliveroo said it has nominated liquidators to close its Hong Kong businesses that it did not sell to foodpanda, and that its Hong Kong platform will remain live until 7 April 2025.
Eric French, chief operating officer of Deliveroo, stated, "We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved in our operations in Hong Kong. We have been proud to serve so many people such amazing food over the past nine years."
'Robust' Growth
In January of this year, the company Deliveroo said it had 'robust' growth in its final quarter, with gross sales on its platform up 7%, driven by more orders and increased spending, and said its full-year earnings would be towards the top of its forecast.
The British company said adjusted core earnings were expected to be towards the top end of its £110-£130 million ($134-$159 million) range, adding that it would be free cash flow positive for the year, in line with its guidance.
Gross transaction value (GTV) increased 6% during the year, in-line with its guidance range of 5%-9% at constant currency.
In August 2024, the British meal delivery company said it had achieved the twin milestones of profit and free cash flow in the six months to end-June as demand from customers stabilised.
