Delivery Hero has transferred several of its operations in Central and Eastern Europe to Glovo in a deal worth 170 million euros.
The Barcelona food delivery company will acquire the Foodpanda businesses of Delivery Hero in Romania and Bulgaria, the Donesi brand in Serbia, Montenegro, Bosnia and Herzegovina and Pauza in Croatia. Transactions are currently subject to regulatory approval.
The agreement marks a significant doubling in the Central and Eastern European and Balkan markets for Glovo.
Earlier this month he also acquired Slovenian food delivery company Ehrana for an undisclosed amount.
“[The region has] has always been at the heart of our long term strategy to focus on markets where we see clear opportunities to lead and where we can build a sustainable business ”, said Oscar Pierre, Managing Director of Glovo.
“Central and Eastern Europe is a very important part of this plan. The region has truly embraced on-demand delivery platforms and we are very excited to strengthen our presence and increase our footprint in countries that continue to show tremendous growth potential. “
It remains to be seen what strategy Glovo will implement in these markets. The company, which raised 450 million euros earlier this year, has invested heavily in its dark store business, delivering food, groceries and other items quickly. Pierre previously said he planned to have dark stores in 100 cities by the end of 2021.
For Delivery Hero, this is the latest deal with Glovo. Last year, it acquired the Latin American activities of Glovo for 230 million euros.
In a statement, Delivery Hero’s managing director Niklas Östberg sold these various European business units to Glovo to focus on other markets.
“Delivery Hero has built a clearly leading company in the Balkan region over the past two years. However, with many operational priorities on our plate, we believe Glovo would be in a better position to continue to create an incredible experience for our customers in this area. region, ”said stberg.
Delivery Hero achieved a turnover of 1.4 billion euros for the first quarter of the year and plans to double its turnover in 2021.