Delivery Hero, the parent company of foodpanda, confirmed that it is in talks for the partial sale of its Asia business.

Intends to sell activities under foodpanda brand

The Berlin-based company intends to sell its activities under its subsidiary brand foodpanda, Reuters reported, citing German business magazine Wirtschaftswoche, which first broke the news.

More specifically, Delivery Hero plans on selling foodpanda's operations in selected Southeast Asia markets, such as:

• Singapore,
• Malaysia,
• Cambodia,
• Myanmar,
• The Philippines,
• Thailand, and
• Laos.

The value of the deal is still under negotiation, reported Reuters.

In response to queries from Mothership, foodpanda said: "Delivery Hero confirms negotiations with several parties regarding a potential sale of its foodpanda business in selected Southeast Asia markets."

"Any discussions or plans are in their preliminary stages."

In August 2023, Delivery Hero's chief executive Niklas Oestberg said that Asia was the segment where the company saw "the most opportunity to invest".

Grab is a potential buyer

According to Reuters, Singapore's Grab is a potential buyer, and could pay slightly over 1 billion euros (S$1.5 billion) for the unit.

Mothership has reached out to Grab for a comment.

For the second quarter of 2023, ended Jun. 30, 2023, Grab stated its revenue grew by 77 per cent on a year-on-year basis to US$567 million (S$775 million).

It made most of its sales from its food delivery business.

Grab expects to breakeven on an adjusted core earnings basis in the third quarter of 2023.

Top images via foodpanda & Grab websites.