Delivery Hero’s years of international expansion are now under scrutiny. The company’s biggest investors are pushing the food delivery giant to sell assets and streamline its sprawling empire, arguing that the current strategy has eroded billions in share value.
The delivery hero is facing increasing pressure from its biggest shareholders to accelerate a strategic overhaul that includes selling off large parts of the business.
Hong Kong-based hedge fund Spix Management, which owns about 9.2% of the German food delivery company, warned in a letter that it could push for leadership changes if the company does not move quickly on a strategic review. Investors argued that Delivery Hero’s poor profitability and global expansion exposed the company badly.
Shares in the Berlin-based group have fallen about 30% in the past year and now trade below 17 euros, valuing the company at nearly 5 billion euros. At the peak of the pandemic-era tech boom in 2021, the stock traded above €130. It’s not a correction, it’s a crater.
Aspex wants the agency to accelerate a strategic review announced in December and consider selling businesses where it is not the strongest owner or operator, specifically referring to operations in Asia, the Middle East and Latin America.
CEO Nicholas Ostberg said the company is evaluating strategic options with advisers at JPMorgan and talks are ongoing. Management maintains that the current share price does not reflect operational progress, which is what you say when the share price reflects too much operational progress.
The conflict comes as the delivery hero faces complex external pressure. Competition from Uber, DoorDash, Grab and Meituan has intensified in key markets, and the company is also battling a 329 million euro fine from the European Commission related to a food delivery cartel investigation.
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The dispute reflects a broader reckoning in the global food supply industry.
For years the sector pursued growth at almost any cost, racing into new countries, subsidizing orders with discounts and spending heavily on logistics networks in the hope that scale would eventually produce profits. Investors endured these losses in an era of ultra-low interest rates and pandemic-driven demand for home deliveries, because the story was so good that no one needed the numbers to work yet.
