Delivery Hero, a Germany-based food delivery company, achieved positive free cash flow for the first time in late 2023.

This milestone follows cost-cutting efforts and a focus on key markets in the Middle East and Asia amid strong competition.

In December 2024, Delivery Hero listed its Middle Eastern unit, Talabat, in Dubai, raising US$2 billion to reduce its US$3.8 billion in convertible bonds.

Talabat generated US$5.3 billion in sales in the first three quarters of 2024, making it Delivery Hero’s strongest regional asset.

Despite these advancements, the company faces challenges. Regulators blocked its proposed sale of Taiwan operations to Uber, and Meituan’s app surpassed Foodpanda in Hong Kong.

In South Korea and Southeast Asia, rivals like Couping and Grab are increasing competition with aggressive pricing pricing and free delivery.

Looking ahead, Delivery Hero is exploring automation, including robots in South Korea and drones in Norway.

Delivery Hero will release its Q4 results this week, with 2024 adjusted earnings expected at the lower end of €725 million (US$748.43 million) to €775 million (US$800.04 million).

Recent Delivery Hero developments