With people’s extremely busy lives and the tech industry’s push to satisfy consumer demand for instant gratification, it’s no wonder the food delivery market has proven to be successful.
Just before the summer officially hits, there are talks of European-based food delivery startup company, Delivery Hero, going public with a listing valued at $4.5 billion (4 billion euros). With its parent company Rocket Sciences falling victim to financial losses and poor valuations with its startups, concerns of Delivery Hero’s success have risen and the pressure to do well is on.
While Delivery Hero’s 2017 Q1 revenue increased by 68 percent, the company is hoping to expand on that. Its CEO, Niklas Ostberg, commented on the company’s possible initial public offering and its focus for the future. He said “We can go at any point in time if we feel it is the right time. With size comes profitability and our focus is on building size and service levels.”
As e-commerce giants like Uber and Amazon move into the food delivery space, online food delivery services have boosted their efforts to raise additional financing to help stay afloat and maintain leads. While Goldman Sachs, Morgan Stanley and Citi are working with UBS, Unicredit, Jeffries and Berenberg to move the Delivery Hero deal forward, all have chosen to not comment at this time.
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