British meal delivery company Deliveroo said on Monday that it will exit its Hong Kong operations due to poor performance.
The UK firm said it would sell some of its assets to Delivery Hero’s foodpanda for an undisclosed amount while closing other assets.
In a statement, Deliveroo said, “There are several dynamics specific to the Hong Kong market which led the Board to consider strategic options and… determine that it would not serve shareholders’ best interest to continue to operate in Hong Kong.
The company’s operations in Hong Kong were loss-making and accounted for about 5% of overall transactions.
Deliveroo said it has nominated liquidators to close its Hong Kong businesses that it did not sell to foodpanda, and that its Hong Kong platform will remain live until 7 April.
The announcement comes after reports last month – which were swiftly denied – that CEO of Deliveroo Will Shu would step down from the business.
Shu denied the reports after Sky News announced the possibility.
A Deliveroo spokesperson told to Reuters in an emailed statement at the time, “In response to rumours in the media, the company confirms that there are no plans for Will to step down.”
Shu co-founded the business in 2013 with his childhood friend Greg Orlowski, according to the company’s website.
He owns more than 6% of Deliveroo, making him the third-largest shareholder, according to data from the London Stock Exchange Group (LSEG).
US meal delivery group Doordash expressed interest in taking over the firm in early 2024, Reuters reported in June.
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