What's happened
Deliveroo announced it will cease operations in Hong Kong on April 7, 2025, citing financial losses and intense competition, particularly from rival Keeta. This decision follows Uber Eats' exit in 2021 and reflects ongoing challenges in the city's food delivery sector amid changing consumer habits.
What's behind the headline?
Market Dynamics
- Intense Competition: The entry of Keeta, backed by Meituan, has disrupted the market, capturing approximately 43% of order numbers in early 2024, surpassing Foodpanda.
- Financial Viability: Deliveroo's decision reflects a broader trend of food delivery services struggling to maintain profitability in Hong Kong, where delivery accounted for only 12% of restaurant transactions last year.
- Consumer Impact: While consumers may initially see little disruption, the exit of Deliveroo could lead to reduced competition, potentially increasing prices and fees for both restaurants and customers.
Future Implications
- Market Consolidation: The consolidation of delivery services may lead to fewer choices for consumers and higher costs in the long run.
- Worker Concerns: The transition for affected workers remains uncertain, particularly for delivery riders, raising questions about job security and opportunities in the evolving market.
What the papers say
According to the South China Morning Post, Deliveroo's exit is attributed to 'fierce competition and financial losses,' with the company reporting negative earnings in Hong Kong. The Post also highlights that Keeta's aggressive expansion has significantly reshaped the market landscape. Bloomberg adds that Deliveroo's decision follows a trend of exits from the Hong Kong market, noting Uber Eats' departure in 2021 due to similar challenges. The competition has intensified, with Keeta offering broader restaurant options and discounts, making it a preferred choice for consumers, as noted by a user quoted in Bloomberg.
How we got here
Deliveroo's departure from Hong Kong comes after nearly a decade of operations, marked by fierce competition and financial struggles. The company reported negative earnings in the region, exacerbated by the rise of Keeta, which has rapidly gained market share since its launch in 2023.
Go deeper
- What led to Deliveroo's decision to leave Hong Kong?
- How will this impact food delivery options in the city?
- What is the future of food delivery services in Hong Kong?
More on these topics
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Deliveroo is an online food delivery company based in London, England. It operates in two hundred locations across the United Kingdom, the Netherlands, France, Belgium, Ireland, Spain, Italy, Australia, New Zealand, Singapore, the United Arab Emirates, Pu
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Meituan-Dianping is a Chinese shopping platform for locally found consumer products and retail services including entertainment, dining, delivery, travel and other services. The company is headquartered in Beijing and was founded in 2010 by Wang Xing. The
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Hong Kong, officially the Hong Kong Special Administrative Region of the People's Republic of China, is a metropolitan area and special administrative region of the People's Republic of China on the eastern Pearl River Delta of the South China Sea.
