British food delivery service Deliveroo announced on Monday that it will be exiting the Hong Kong market. The company has reached an agreement to sell certain assets to Delivery Hero’s foodpanda, though the financial details of the deal have not been disclosed. Additionally, Deliveroo will shut down other parts of its operations in the region.
In a statement, Deliveroo cited “several dynamics specific to the Hong Kong market” as the reason behind its decision to explore strategic options, ultimately concluding that continuing operations in Hong Kong was not in the best interest of shareholders.
The company’s Hong Kong operations have been unprofitable, contributing to approximately 5% of its global transactions. As part of its exit strategy, Deliveroo has appointed liquidators to oversee the closure of the remaining business units not acquired by foodpanda. The platform will remain active until April 7, 2025, before the final closure.
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