Deliveroo, a UK-based food delivery platform, recently announced that they will cease their operations in Germany and begin looking into other markets.
The company has been backed by Amazon, where the eCommerce giant invested $575 million in Deliveroo earlier in the year.
In terms of its presence in Germany, the company has had 1,100 riders spread across five cities, with an overall employee count of 100.
As noted by Reuters, the shift could smooth the competitive landscape for rivals such as Takeaway.com, a Dutch firm that agreed last year to buy the German operations of another food delivery firm, Delivery Hero.
Deliveroo will bring its focus to other markets across Europe and the Asia-Pacific region. The global food delivery market is rumored to be worth as much as $100 billion.
As quoted by the newswire, a Deliveroo spokesman said that “we’ve decided to focus on other markets,” but that a return to Germany could be in the cards.
The European competitive arena for food delivery has recently been marked by a $10 billion deal between Takeaway.com and the U.K.’s Just Eat. The merger of the two will create a food delivery firm that would be among the market leaders in Britain, Germany and other countries such as Canada. The company will be called Just Eat Takeaway.
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