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New | Foodpanda and Deliveroo scale up for street battle over Hong Kong food delivery

Euromonitor International estimates the food delivery market in Hong Kong covering non-seating outlets will be worth HK$423.2 million this year

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Foodpanda CEO Ralf Wenzel. Photo: K. Y. Cheng

Online food delivery companies foodpanda and Deliveroo plan to continue to expand their coverage of Hong Kong neighbourhoods, as tighter funding hits the on-demand food industry in overseas markets.

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Rocket Internet-backed foodpanda and London-based Deliveroo said they are expanding in Hong Kong and were sufficiently funded to weather problems faced by start-ups in other markets which have seen mergers and closures as venture capital financing has slowed.

“For us, we raise money, every round is our last round. That’s how we view it, so that’s not a consideration for us,” said William Shu, co-founder and chief executive of Deliveroo.

Food technology companies raised US$684 million in the first quarter of 2016, the lowest quarterly funding total since the fourth quarter of 2014, according to CB Insights.

Deliveroo co-founder and Chief Executive Will Shui. Photo: SCMP Handout
Deliveroo co-founder and Chief Executive Will Shui. Photo: SCMP Handout
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CB Insights defines the sector as including online ordering platforms, meal kit delivery, grocery delivery as well as new types of food sources such as insect protein companies.

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