German food delivery giant Delivery Hero lost $6 billion of its market value after disappointing 2022 guidance

Delivery Hero, a Germany-based food delivery firm, has lost $6 billion of its market value after disappointing 2022 guidance. The former unicorn startup saw its share price plunge Thursday, wiping out nearly $6 billion from its market value after the delivery giant announced earnings guidance that disappointed investors.

In the fourth quarter of 2021, Delivery Hero said it generated $11 billion (9.6 billion euros) in gross sales volume, up 39% year-on-year. Its revenues also climbed about 66% to 1.9 billion euros in the quarter. For the entire 2021, Delivery Hero reported an overall sales volume of 35.4 billion euros, slightly exceeding its own guidance, while revenues soared 89% to 6.6 billion euros, which is roughly in line with expectation, CNBC reported.

With millions of people now working from home due to the pandemic, online delivery companies are now experiencing unprecedented demands for their services. That’s also led to the company making a number of acquisitions in recent years. We covered Delivery Hero late last year after the company led a $1 billion investment in German grocery tech startup Gorillas.

Over the years, Delivery Hero has acquired at least 20 companies to maintain its position as the leading food delivery platform in the world. Founded in 2011 by CJ Foo, Claude Ritter, David Bailey, Kolja Hebenstreit, Markus Fuhrmann, Nikita Fahrenholz, Niklas Ostberg, and Tracy Richardson, the Berlin, Germany-based Delivery Hero is a network of online food ordering sites with over 100 restaurant partners, operating in 21 countries and with over 73,000 restaurant partners.

Originally backed by Amazon, The London, England-based Deliveroo was founded in 2013 by Will Shu and Greg Orlowski. The startup makes money by charging restaurants a commission fee, as well as by charging customers a fee per order. It currently operates in two hundred cities.

Deliveroo operates in over 500 towns and cities across 14 markets, including Australia, Belgium, France, Germany, Hong Kong, Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, Kuwait, and the United Kingdom. The Proskauer team was led by London private equity partner Richard Bull, with associates Andrew Houghton and Darpit Mehta supporting him throughout the transaction.

Summary of Delivery Hero acquisitions.

2011: Hungryhouse (UK)
2012: Lieferheld (Germany), OnlinePizza (Sweden), PizzaPortal (Poland), Pizza-Online (Finland)
2014: PedidosYa, Clickdelivery (Latin America), Pizza.de (Germany), Baedaltong (Korea)
2015: Talabat (MENA), Yemeksepeti (Turkey), e-food (Greece), Damejidlo (Czech Republic), foodora
2016: foodpanda (Asia)
2017: Otlob ( Egypt) ,Carriage (MENA), Appetito24 (Latin America), Foodfly (Korea)[51]
2018: Hipmenu (Europe), Netcomidas (Bolivia)
2019: Zomato food delivery business (MENA), Woowa (South Korea), DeliveryRD (Dominican Republic)
2020: Instashop (MENA), Glovo (Latin America)