Foodpanda has become profitable in two of its three operating regions, Central and East Europe and the Middle East, with profits in Asia a function of how quickly it can grab market share, its chief executive said on Tuesday.
The emerging markets food delivery specialist said it had become profitable in the Middle East after agreeing to a deal to merge its Hellofood business in Saudi Arabia with Saudi delivery firm Hungerstation.
The combined operation will serve 1 million active customers and 2,000 restaurants across 30 cities in the largest Gulf state. It also runs food delivery services in Egypt as Otlob and in the United Arab Emirates as 24h.ae.
Foodpanda, 49 percent owned by Berlin-based ecommerce investor Rocket Internet, turned profitable in its nine-country Central and Eastern Europe region earlier this year, the company said.
The global food delivery market is consolidating quickly through acquisitions and asset swaps and as investment in new start-ups has fallen sharply in the past year. Companies such as Foodpanda are under pressure to produce profits instead of chasing growth at any cost as consumers are increasingly shifting to on-demand food delivery ordered via mobile phones.