Meal delivery services have revolutionized the food industry, making a wide range of cuisines available for to-the-door delivery at the touch of a button. The meal delivery service revolution has been in full swing since late 2008, but over the last decade one meal delivery platform has stood out amongst all others- Delivery Hero.
Starting off as a humble web-based food ordering platform back in 2011, Delivery Hero has grown into an international food delivery juggernaut. Delivery Hero now operates in over 53 countries around the world, partnering with more than 300,000 restaurants throughout Asia, Europe, Canada, Australia, South America, and the Middle East.
In this article, we’ll take a look at the story behind the Delivery Hero Platform and find out what has made it the most popular and successful meal delivery platform in the world.
What is Delivery Hero?
Delivery Hero is a comprehensive meal ordering service that can be accessed via a dedicated smartphone app for Android and iOS, as well as a web-based browser platform. Users are able to view local takeaway and delivery food services in their area and sort by various parameters such as cuisine, price, rating, distance, operating hours, and more.
Offering one of the most flexible payment solutions on the market, Delivery Hero provides hungry consumers with the choice to pay for their order online via credit card or Paypal, or with cash on delivery. The key criteria behind the selection process that Delivery Hero uses when selecting restaurants to partner with are convenience, reliability, and quality, ensuring a positive dining experience for their customers every time.
The Delivery Hero Story
The idea behind the Delivery Hero platform was created by Niklas Östberg in Sweden in 2008, providing hungry Swedes with the ability to order food quickly and easily online. The platform was so successful that several years later in 2011 Östberg joined forces with three friends, Lukasz Gadowski, Markus Fuhrmann and Kolja Hebenstreit, in order to create Delivery Hero Holding.
From the very beginning, the Delivery Hero network was built around the concept of global domination. The first international moves made by Delivery Hero launched the platform into Russia, Australia, and Mexico in the same year as the inception of the company, with the acquisition of popular German food delivery service Lieferheld and UK-based HungryHouse soon after in early 2012.
At the same time as their early 2012 acquisitions, the team behind Delivery Hero ran a funding round that yielded enough capital to capture OnlinePizza Norden and several other food delivery organizations in Poland, Austria, Sweden, and Finland in March of the same year. By August 2012, Delivery Hero had acquired several Southeast Korean and Chinese food delivery services through platforms such as Aimifan and YoGiYo, which culminated in a significant capture of popular Asian food delivery service TastyKhana.
Some of the success of the Delivery Hero in the competitive online food delivery environment 2012 is attributed to the aggressive and sometimes illegal actions taken by Delivery Hero in shouldering out the competition. In late 2012, the Delivery Hero Berlin head office raided by German Police, who pressed charges against Delivery Hero management for hacking attacks against competitors and data stealing from other web services.
Delivery Hero continued to grow throughout 2013 despite the prosecution, and in 2014 gained a foothold in Latin America, eventually absorbing PedidosYa, the largest online food delivery portal in South America. In the latter half of 2014, Delivery Hero scored a decisive victory by assimilating Pizza.de, their primary rival in the German market.
From 2014 to 2015, Delivery Hero was distributing more than 5 million orders monthly around the world, or roughly 1 order every second. Two funding rounds captured $88 million USD and $300 million USD respectively. Over 2015 and 2016, the Delivery Hero platform grew even larger, with Rocket Internet coming on board with the 30% stake to facilitate international growth.
The massive increase in funding allowed Delivery Hero to further expand their sphere of influence, and over 2015 and 2016 the platform acquired Talabat.com, the largest Middle Eastern food delivery service, Yemeksepeti, a market leader in the Turkish market, and Foodora, one of Delivery Hero’s primary international rivals, as well as Foodpanda.
Despite the controversy surrounding the fast rise of the Delivery Hero platform to global supremacy, consumers have responded extremely well to the fast delivery times, high food quality standards, and the wide selection of cuisines it offers. Delivery Hero now processes more than 15 million orders monthly through more than 300,000 restaurants globally.
The Delivery Hero platform employs 5,000 people worldwide, and as of December 2016 has processed over 170 million orders in total. More than $1 billion USD has been invested in Delivery Hero to date, making it the most successful and influential food delivery system worldwide.
How Delivery Hero Works
Delivery Hero is incredibly simple. Depending on the geographic location of the user, hungry customers are provided with either the Delivery Hero site or the local platform that is owned by Delivery Hero, such as Foodora in Australia. By adding their location details into a search field, users are presented with an assortment of local restaurants and takeaway food providers that deliver food in their area.
Delivery Hero frequently run promotions to encourage users to download their mobile app, such as $10 off coupon codes, or double discounts for first timers. Delivery Hero is also a popular choice on college campuses around the world, frequently offering 10% off discounts for individuals with university email addresses.
The Future of Delivery Hero
The Delivery Hero platform has recently released news of further investment that will allow them to establish a firmer grip over the world food delivery trade, with global internet and entertainment group Naspers investing EUR 387 million into the platform. With full-year revenue growing by 79% in 2016, Delivery Hero has firmly established itself as a market leader.
Delivery Hero order numbers have also grown dramatically over the last year, with a 65% net increased from 103 million to 171 million in just one year, proving that Delivery Hero is here to stay.