Delivery Hero has raised its full-year revenue guidance

Delivery Hero, the online food delivery group, has raised its full-year revenue guidance by about €200 million, or roughly 8 per cent, after order volumes nearly doubled during the pandemic. The Berlin-based internet group behind the Foodora, Foodpanda and Talabat apps said that it now expected 2020 revenues to hit €2.6 billion -€2.8 billion, compared with €2.4 billion – €2.6 billion previously, as it announced plans to launch in Japan… The company is competing with the likes of Just Eat Takeaway, Uber and China-focused Meituan Dianping for global dominance of the food delivery market, which has seen an increase in dealmaking over the past year… Orders placed through its network of apps and sites across Asia, Europe, the Middle East and Latin America rose by 95 per cent to 280m for the second quarter, accelerating from 67 per cent in the same period a year ago. Orders in Asia, its largest segment, almost quadrupled and Europe was up by 47 per cent. However, its Middle East and north Africa business — where curfews were particularly strict — saw a 6 per cent decline, with an estimated 40m orders lost between mid-March and the end of June. Delivery Hero is also stepping up its push into groceries and other convenience store items, with plans to operate 400 “Dmart” local warehouses by the end of the year. Q-commerce” (short for quick commerce) orders almost doubled to 10.5 million in the second quarter compared with the three months immediately before. Delivery Hero’s shares have risen 70 per cent since the lows of mid-March, giving it a value of €18.8 billion at Monday’s close. 

Tim Bradshaw