- January 11, 2022 / 4 min readIt also announced that it has sold USD 150 million worth of its stake in the Latin-American delivery company Rappi in a series of transactions.
Delivery Hero expects its food delivery business to break even during H2 2022 and shares insights on Glovo’s business performance
One of the world’s leading delivery platform Delivery Hero has announced that its food delivery business (including Glovo) is expected to break even during H2 2022.
Operating its service in around 50 countries across Asia, Europe, Latin America, the Middle East and North Africa it can also generate between EUR 0 and 100 million in adjusted EBITDA in Q4 2022, while investments related to its quick commerce business are predicted to peak in the first quarter of 2022 and gradually decline thereafter. Delivery Hero reconfirms its long-term adjusted EBITDA/GMV margin target of 5-8%.
“Delivery Hero has always been investing into growth with the clear ambition of reaching the scale needed to achieve profitability. We have remained confident that through achieving the right size, we are able to bring tremendous benefits to all partners in our ecosystem, as well as to our shareholders,” said Emmanuel Thomassin, CFO of Delivery Hero by adding that the investment strategy has proved to be successful, and the brand is on a solid trajectory to turn their food delivery business profitable during the second half of this year.
It also announced that it has sold USD 150 million worth of its stake in the Latin-American delivery company Rappi in a series of transactions.
Delivery Hero continues to hold an approximate stake of 7.9% in Rappi on a fully diluted basis, currently valued at over USD 400 million based on the Series F valuation.
It first invested in Rappi in its Series B, when the company was valued at approximately USD 400 million. Rappi’s financial performance is a testament to the company’s overall fantastic growth and strong business model. However, Delivery Hero will continue to exercise a disciplined capital allocation, and focus on investments that are in line with the Group’s strategic vision. Over time, the remaining Rappi shares will be monetized at an appropriate valuation.
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