Delivery Hero Grows Subscriptions to Compete With Uber and Retain Market Share
By Paolo Laudani and Ozan Ergenay
Delivery Hero’s Strategy Amid Fierce Competition
Aug 27 (Reuters) - Competition has been "pretty brutal" in some of Delivery Hero's key markets over the past couple of years, but growing its subscriber base has helped the business, CEO Niklas Östberg said on Thursday.
The German food delivery firm, which operates across continents through its subsidiaries and is currently subject to a takeover offer by U.S.-based rival Uber, lifted its 2026 guidance earlier in the day.
Competitive Landscape and Market Challenges
"The good news is that it's hard to go from very brutal competition to even worse. So it can only get better," Östberg told Reuters. "Right now, I think competition is really hard, but it's not harder than last year."
Leveraging Subscriptions for Customer Retention
Delivery Hero is increasingly leaning on subscription plans to retain customers and defend its market share.
The Role of Subscriber Programmes in the Delivery Industry
Analysts have long viewed subscriber programmes as a key advantage for delivery platforms because they encourage repeat orders and reduce customer churn, helping companies spread marketing costs across a larger number of transactions.
Customer Loyalty in Key Markets
Customer loyalty has helped Delivery Hero withstand years of intense competition in key markets including Saudi Arabia and South Korea, Östberg said.
In South Korea, half of its customers are subscribers, while in Saudi Arabia that number is roughly 60%, he added.
Expanding Beyond Food Delivery
"We are more than a food delivery company today," Östberg said, adding that a wider offering gave customers more reasons to subscribe and increased loyalty.
Strategic Moves in Asia
The German company faces increasing competition in Asia. In March, it agreed to sell its Foodpanda business in Taiwan to Singapore's Grab, having come under pressure from several large shareholders to carry out strategic reviews.
(Reporting by Paolo Laudani and Ozan Ergenay in Gdansk, editing by Milla Nissi-Prussak)