Delivery Hero may hold onto its Foodpanda business in Southeast Asia, its CEO Niklas Ostberg said during an interview with CNBC. He added that he’s currently confident about remaining committed to the sub-brand, and doesn’t feel an urgent need to sell if off at this time.
To recap, it was reported in September of last year that the Berlin-based company had announced plans to sell its Foodpanda business in Singapore, Malaysia, Philippines, Thailand, Cambodia, Myanmar and Laos. According to German publication Wirtschaftswoche, the partial sale is due to the sub-brand’s stagnated growth in Southeast Asia since the COVID-19 lockdowns eased.
“I’m more than happy to hold onto it forever,” Ostberg told CNBC. “The business has turned breakeven now, [and] that’s good [that] it’s not a drag on our profitability anymore, that’s nice.”
The CEO insists that Delivery Hero is not continuing to build its Foodpanda business in Southeast Asia with the intention of selling it. However, he added that the company is still open to any potential buyers and would “act rational” towards investors that are offering a price that is higher than what it can generate for it over the years.
Earlier this month, Delivery Hero dispelled rumours of failed negotiations for the potential sale of the business, which was first brought to light by The New Straits Times. According to a company representative, the talks are still ongoing but did not name any buyers. It was also reported by the same publication in December that Grab had delayed negotiations in acquiring Foodpanda, which is also its closest competitor in the Southeast Asian market, due to issues concerning pricing.
(Source: CNBC)
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