Delivery Hero announces merger with Russian Foodik

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delivery hero

Berlin-based online food delivery service Delivery Hero is continuing its growth, merging its Russian subsidiary Delivero with Foodik, a major competitor of the service. The consolidation has put Delivery Hero in a strong second-place position in the Russian marketplace. The two businesses will both be shareholders in the new company.


A tactical approach to the Russian market

The merger is a different tactic for the global powerhouse, which traditionally takes over the local competition, rather than collaborating with them. The Russian merger will put the focus on the Foodik brand, giving Delivero users access to the restaurants on the platform, rather than the other way round.

CEO of Delivery Hero, Fabian Siegal, says this is because Foodik is more established than Delivero. He also says this focus is in response to the Russian Internet scene, which tends to be dominated by local products, making it a hard market to crack for outside companies.

The oldest online food ordering service in Russia, Foodnik was launched in 2008 and offers meals from over 1000 restaurants in Moscow and Saint-Petersburg on the site.

The founder of Foodik and Chairman of the newly combined company, Aleksandr Shamis, says the partnership is “a decisive step for market consolidation in Russia.”

Siegal agrees, saying: “The Foodik team has successfully proven how to scale the business sustainably in Russia. We are looking forward to the combined business, that will continue to be run by the Foodik team.”

Launched in 2010, Delivery Hero is making fast progress in their international expansion and profitability. The €40 million funding round they received in August this year raised their total capital to €80 million, making the company one of the best financed European Internet start-ups in 2012. Investors in the company include Kreos CapitalTengelmann Ventures, Holtzbrinck Ventures, Team Europe, Point Nine Capital and Ru-Net.

Now available in 11 countries, Delivery Hero is a market leader in Sweden, Finland, Poland and Austria and has reached a partnership with 25,000 restaurants worldwide.  They recently made their foray into Asia, launching in China and under the name of YoGiYo in Korea.

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