Delivery Hero

A company feeding the world

5 bicycles all wearing the same uniform with a Delivery Hero crate on their back cycle on a riverside path.
Image credit - © Delivery Hero

What does it do?

Delivery Hero operates online food takeaway marketplaces across more than 70 countries in Europe, the Middle East, Asia and North Africa.

Why do we invest?

Delivery Hero is one of the largest food delivery platforms in the world. The competitive moat that the company has created is impressive, and its position is continuing to strengthen. The network effect is a key barrier to entry for competitors: as more restaurants join Delivery Hero, the greater choice drives more customers to use the platform and to use it more often. In turn, this results in more restaurants choosing to join the network, thus creating a virtuous cycle. Delivery Hero is investing heavily in its business, primarily spending on marketing to grow the number of users at each entity in the group. This is because, in the long term, a mature market can sustain a single dominant local platform with a broad offering, leading to the capacity to make very attractive operating margins.

Who is key?

CEO Niklas Östberg describes Delivery Hero as “less of a company and more of a confederation”. Through strategic acquisitions, he has used strong local leadership teams to manage regions with the autonomy to cater to local tastes. For example, in December 2019, Östberg led the acquisition of Woowa Brothers in South Korea. Its founder, Bongjin Kim, now manages Delivery Hero’s Asian operations. Östberg has also shown impressive foresight in disposing of its UK and German operations to focus on markets in which it can win. 


Founded in: 2011

Invested in: 2017


Headquartered: Germany

Important information

The company showcased on this page is part of a diversified portfolio. The commentary should not be taken as advice on an individual stock.

Investment trusts are UK public companies and are not authorised and regulated by the Financial Conduct Authority. You may not get back the amount invested and please bear in mind that past performance is not a guide to future performance.