Online food delivery firm Deliveroo said on Monday it is exiting Hong Kong for financial reasons, after operating in the SAR for nine years.

Its UK-based parent company said its service platform will run until April 7, and it will close Deliveroo's operations by selling some assets to rival foodpanda, and closing other assets.

About 200 staff members will be laid off.

"There are several dynamics specific to the Hong Kong market which led the Board to consider strategic options," Deliveroo said in a statement, without explaining what the dynamics were.

"Given the Group's commitment to disciplined capital allocation, [we] determine that it would not serve shareholders' best interests to continue to operate in Hong Kong."

The company's chief operating officer, Eric French, said the firm wants to thank all of its staff, consumers, riders and restaurant and grocery partners in Hong Kong.

Deliveroo said in its 2024 interim results that Hong Kong "was a laggard amongst our major markets", citing "a more difficult market and competitive environment".

Its Hong Kong market share fell after the entry of mainland-based Keeta, a subsidiary of Meituan, in late 2023.

The company said on Monday that Hong Kong represented five percent of the group's gross transaction value in 2024, and had a five percentage point negative impact on international gross transaction value growth.

Meanwhile, foodpanda's parent, Delivery Hero, announced it reached an agreement with Deliveroo, saying that some of the outgoing food courier's customers and riders will be directed to foodpanda.

Delivery Hero had said in a trading update last month that it saw "strong customer growth" in the SAR in December. (Additional reporting by Reuters)
_____________________________
Last updated: 2025-03-10 HKT 18:54