Online food delivery group, Delivery Hero, has raised its full-year revenue guidance by about €200m ($234m, £181m), or roughly 8 per cent, after the number of orders had almost doubled during the pandemic.
The Berlin-based group behind the Foodora, Foodpanda and Talabat apps said that it now expected 2020 revenues to hit €2.6bn-€2.8bn, compared with €2.4bn-€2.6bn previously, as it announced plans to launch in Japan.
After initially taking a hit in March and April as restaurants were forced to close and consumers stockpiled groceries, food delivery apps have seen demand for takeaway meals and other items explode in recent months as lockdowns continued globally.
Delivery Hero said in a trading update that revenues for the three months to June were up 96 per cent to €612m. It added 130,000 new restaurants to its services during the quarter, taking its total to 630,000.
Gross merchandise volume, a measure of how much consumers spent in each order, rose 166 per cent in Asia to €1.3bn, reaching €2.8bn overall.
The company also expects to make additional investments of up to €150m in promotions and to protect its market share, €50m less than it previously forecast.
Orders placed through Delivery Hero’s network of apps and sites across Asia, Europe, the Middle East and Latin America rose by 95 per cent to 280 million for the second quarter, increasing from 67 per cent in the same period a year ago.
Orders in Asia, its largest segment, almost quadrupled and Europe was up by 47 per cent. However, its Middle East and north Africa business saw a 6 per cent decline, with an estimated 40 million orders lost between mid-March and the end of June.
Delivery Hero’s shares have risen 70 per cent since the lows of mid-March. They gained another 2 per cent on Tuesday, giving the company a market value of more than €19bn.
As it awaits regulatory approval of its $4bn acquisition of South Korea’s Woowa Brothers, Delivery Hero said it planned to invest up to €30m to launch its Foodpanda brand in Japan by the end of September.
Delivery Hero’s entry to Japan will leave the US and UK as the two largest food delivery markets outside China where it has no presence.