(PEHub) German online food ordering platform Delivery Hero has acquired Brazilian online delivery service Subdelivery. No financial terms were disclosed. Delivery Hero’s backers include Insight Venture Partners, Kite Ventures and Vostok Nafta.
PRESS RELEASE
October 13th 2014 – Delivery Hero, the largest global provider of online and mobile food ordering, announced that c. 35% of orders now come from Asia and Latin America. Its Asian business is growing more than 500% per year, while its Latin American business has grown over 300% over the past year.
Delivery Hero’s current portfolio of service providers in Latin America, including PedidosYa, Delivery and Sinimanes, is being expanded by the acquisition of Brazilian platform Subdelivery, based in São Paulo. Subdelivery has built a strong position in the region’s largest market, holding an exclusive contract for offering Subway products.
Korea represents a key component of Delivery Hero’s rapid growth in Asia. Its Korean brand YoGiYo generates c. 1 million monthly orders from its online channel alone (see graph) and more than $2 million monthly revenue. A key pillar of YoGiYo’s strategy is its strong investment into marketing, with an annual marketing budget of over $40 million at its disposal. For its TV advertising campaign, YoGiYo hired two top actors in Korea, Park Shin Hye and Kang Ha Neul, who are each well-known from the popular Asian television series “The Heirs.”
Recently, investments into the YoGiYo product were rewarded by the app winning the Google Play Award as “Best App of 2013″. YoGiYo has squarely positioned itself as the leader in the Korean market only two years after being founded by Delivery Hero.
Niklas Östberg, CEO of Delivery Hero commented: “Asia and Latin America both hold a central role in our long-term strategy. We will continue focusing on growth and market share over profitability for the next 7-10 years. We have the advantage over our local competitors of being able to afford loss-making markets like Korea for a very long time because they are funded by the rapidly growing profits generated in our European markets.”