Berlin-based Delivery Hero has confirmed talks on a partial sale of its Asia business on Wednesday, Reuters reported. The deal’s value is still under negotiation, according to the report.
The Wirtschaftswoche business magazine first reported the news earlier in the day, saying Singapore-headquartered super app Grab could pay a little more than 1 billion euros ($1.07 billion) for the unit.
According to the report, Delivery Hero plans to sell its activities under the foodpanda brand in Singapore, Cambodia, Laos, Malaysia, Myanmar, the Philippines and Thailand. Grab did not immediately reply to an emailed request for comment, according to Reuters.
Delivery Hero has been focusing on reaching profitability while maintaining growth. The group has said that it reached an adjusted profit before interest, tax, depreciation and amortisation (EBITDA) in the first six months of the year after a loss of 323 million euros in the same period a year earlier.
Meanwhile, Grab reported in August lower losses in the second quarter amid higher revenue. Grab said that the losses for the the group were $148 million in the quarter, a 74 percent improvement year on year, primarily due to the improvement in group adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and a reduction in fair value losses on investments, net interest expenses, and share-based compensation expenses.
Grab’s revenue grew 77 percent year on year to $567 million in the second quarter of 2023, attributed to growth across all its segments, continued incentive optimization and a change in business model for certain delivery offerings in one of its markets.
Grab is also focusing on reaching profitability. “We are on track to achieve group adjusted EBITDA breakeven in the third quarter of 2023, ahead of our prior target of the fourth quarter of 2023,” Grab Chief Financial Officer Peter Oey said in a statement then.
Founded in 2012, Grab is a superapp in Southeast Asia, operating across the deliveries, mobility and digital financial services sectors.
Serving over 500 cities in eight Southeast Asian countries, Grab enables users to order food or groceries, send packages, hail a ride or taxi, pay for online purchases or access services such as lending and insurance, all through a single app.
Earlier in July, Grab announced the acquisition of Singapore’s third largest taxi operator Trans-Cab, a local brand that has been serving Singaporeans since 2003. The company has a combined taxi and private-hire-vehicle (PHV) fleet of more than 2,500 vehicles, and is accretive on a net income basis to Grab’s business.
The acquisition includes Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations.
Grab acquires Singapore’s third largest taxi operator Trans-cab through its GrabRentals arm