Deliveroo to exit Hong Kong operations

(Sharecast News) - Deliveroo said on Monday that it has decided to exit its Hong Kong operations through a sale of certain assets to Foodpanda and the closure of other assets. Deliveroo Hong Kong has nominated liquidators to manage closure of the business and the remainder of its assets "in the most efficient way possible", it said.

The company said in a statement: "There are several dynamics specific to the Hong Kong market which led the board to consider strategic options and, given the group's commitment to disciplined capital allocation, determine that it would not serve shareholders' best interests to continue to operate in Hong Kong."

Last year, Hong Kong represented 5% of group gross transaction value and had a 5 percentage point negative impact on International GTV growth. The market remains adjusted EBITDA negative, Deliveroo said.

The Hong Kong platform will remain live until 7 April.

Chief operating officer Eric French said: "We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved in our operations in Hong Kong. We have been proud to serve so many people such amazing food over the past nine years."