Delivery Hero is accelerating its push into subscription-based services to counter intense competition in key markets as it faces a potential takeover by U.S. rival Uber. The German food delivery company reported that half of its customers in South Korea and roughly 60% in Saudi Arabia now subscribe to its loyalty programs, up from prior levels.
Chief Executive Niklas Östberg told Reuters that competition has remained "pretty brutal" in several core markets over the past two years, though he noted conditions have stabilized compared with 2023. "It's hard to go from very brutal competition to even worse," he said. "Right now, I think competition is really hard, but it's not harder than last year."
Östberg emphasized that Delivery Hero has evolved beyond pure food delivery, offering a broader range of services to strengthen customer loyalty and justify subscription fees. The strategy aims to reduce churn, encourage repeat orders, and amortize marketing costs across a larger transaction base.
The company’s pivot comes as it navigates regulatory scrutiny and shareholder pressure. In March, Delivery Hero agreed to sell its Foodpanda business in Taiwan to Singapore’s Grab after major shareholders pushed for strategic reviews. The divestment followed broader efforts to streamline operations amid intensifying rivalry from Uber Eats, DoorDash, and regional players.
Delivery Hero lifted its 2026 financial guidance on Thursday, reflecting confidence in its subscription-led growth model. The company’s shares were unchanged in early trading following the update.
