Introduction to Delivery Hero
Delivery Hero, the world’s leading delivery platform, has established itself as a major player in the online food ordering industry. With its extensive global presence, Delivery Hero has revolutionized the way people order and receive food, providing convenience and efficiency to customers worldwide.
Overview of Delivery Hero
Delivery Hero operates in various regions around the world, including Africa, Americas, Asia, Europe, and the Middle East and North Africa (Delivery Hero). The company’s vast network enables it to serve customers in over 40 countries, catering to diverse culinary preferences and meeting the demands of a global customer base.
Delivery Hero’s business model revolves around connecting customers with local restaurants and food vendors through its user-friendly online platform. By leveraging technology and logistics capabilities, Delivery Hero streamlines the food delivery process, ensuring that customers can easily order their favorite meals with just a few clicks.
Global Presence
Delivery Hero’s commitment to expansion is evident in its widespread global presence. The company’s focus on emerging markets has propelled its growth and market share, particularly in Asia and Latin America. In fact, Delivery Hero’s Asian business is growing at an impressive rate of over 500% per year, while its Latin American business has experienced a growth rate of over 300% in the past year (Delivery Hero Newsroom).
This emphasis on Asia and Latin America aligns with Delivery Hero’s long-term strategy, as highlighted by CEO Niklas Östberg. He has expressed the company’s intention to continue focusing on growth and market share in these regions, recognizing their significance in driving Delivery Hero’s success (Delivery Hero Newsroom).
The table below provides an overview of Delivery Hero’s global presence:
| Region | Number of Countries |
|---|---|
| Africa | 2 |
| Americas | 7 |
| Asia | 13 |
| Europe | 23 |
| Middle East and North Africa | 7 |
Source: Delivery Hero
With its wide-ranging geographical coverage and continuous expansion efforts, Delivery Hero has established itself as a dominant force in the online food delivery industry. By capitalizing on its strengths and leveraging its global presence, the company continues to shape the future of food delivery worldwide.
Strengths of Delivery Hero
Delivery Hero, a prominent player in the online food ordering industry, possesses several key strengths that contribute to its success and market leadership.
Speedy Delivery Service
One of Delivery Hero’s core competencies lies in its speedy delivery service, setting it apart from some e-commerce companies (Delivery Hero Facebook). By prioritizing fast and efficient delivery, Delivery Hero ensures that customers receive their orders in a timely manner, enhancing their overall experience and satisfaction.
Leading Delivery Platform
Delivery Hero has established itself as the world’s leading delivery platform (Delivery Hero). With operations in over 40 countries and a vast network of partner restaurants, Delivery Hero has built a strong infrastructure to facilitate seamless order placement and delivery. This extensive reach and market presence contribute to its competitive advantage and enable it to cater to a wide range of customer needs.
Data Mesh Platform
Delivery Hero’s data mesh platform is a significant strength that empowers the organization. This platform allows the democratization of data across the company, enabling teams to fully own their data pipelines, metadata, and storage options. By centralizing data management and providing flexibility and autonomy, the data mesh platform facilitates efficient data processing, analysis, and decision-making.
The Data Hub, a key component of Delivery Hero’s data mesh platform, enables the migration of data from a centralized system to a distributed system, enhancing scalability and efficiency in handling the company’s data needs (Delivery Hero Tech Blog). This approach addresses data challenges such as data discovery, quality, and governance, leading to improved decision-making processes and overall business performance.
Financial Performance
Delivery Hero has achieved strong financial performance, positioning itself as a key player in the online food delivery market. The company’s financial strength is evident in its valuation, with an EV/EBITDA NTM ratio significantly higher than the median of its peer group (Infront Analytics). This indicates that Delivery Hero may be overvalued compared to its industry peers, reflecting investor confidence in the company’s future prospects and financial stability.
By capitalizing on these strengths, Delivery Hero maintains its position as a market leader in the online food delivery industry. These advantages, including its speedy delivery service, leading delivery platform, data mesh platform, and strong financial performance, contribute to the company’s continued growth and success.
Quick Commerce and Growth
Delivery Hero has capitalized on the emerging trend of quick commerce (q-commerce) to drive its growth and expand its market presence. Through its innovative approach to delivery, Delivery Hero has been able to leverage its strengths and tap into new opportunities in the online food ordering industry.
Quick Commerce (Q-Commerce)
Quick commerce, or q-commerce, is a concept that aims to deliver small quantities of goods almost instantly to customers, complementing traditional e-commerce by providing fast and convenient access to products wherever and whenever needed. Delivery Hero has embraced this concept and is at the forefront of the q-commerce revolution. By focusing on rapid delivery, they are able to meet the increasing demand for quick and efficient service.
Dmarts and Fast Delivery
Delivery Hero has strategically implemented Dmarts, which are delivery-only local warehouses or cloud stores, to facilitate fast and efficient delivery. The company plans to have over 400 Dmarts by the end of 2020, leveraging their logistic and technology expertise to drive the q-commerce category forward. These strategically located Dmarts in city centers, combined with two-wheel delivery fleets, allow Delivery Hero to optimize delivery radius and achieve impressive delivery times. In some markets, delivery times as fast as 15-20 minutes have been achieved, providing customers with unparalleled speed and convenience.
Market Opportunity
The market opportunity for q-commerce within Delivery Hero’s markets is projected to reach EUR 56 billion by 2030, with a global market opportunity of EUR 448 billion. This signifies significant potential growth for Delivery Hero in the q-commerce sector. By capitalizing on this opportunity, Delivery Hero is well-positioned to expand its market share and continue its rapid growth trajectory.
By embracing q-commerce and leveraging its strengths in fast delivery and operational efficiency, Delivery Hero is able to provide customers with an exceptional experience. The innovative approach to quick commerce allows Delivery Hero to stay ahead of the competition and tap into new markets, solidifying its position as a leader in the online food ordering industry.
Diversity and Inclusion at Delivery Hero
Delivery Hero recognizes the importance of diversity and inclusion in creating a sustainable and thriving business. The company’s commitment to fostering an inclusive workplace is deeply ingrained in its culture and values. By embracing diversity, Delivery Hero fuels creativity, enhances employee engagement, and ensures equal opportunities for career growth.
Company Culture and Values
At Delivery Hero, diversity and inclusion are fundamental pillars of the company culture. The goal is to build an environment where everyone can truly be themselves, always feel welcome, and have a seat at the table. By celebrating people’s differences, Delivery Hero creates a workplace that values and respects the unique perspectives and experiences of its employees. This inclusive culture fosters collaboration, innovation, and a sense of belonging for all.
Diversity & Inclusion Strategy
Delivery Hero has developed a comprehensive Diversity & Inclusion strategy for 2022 and beyond. This strategy is built on three core pillars:
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Building diverse teams and inclusive leaders: Delivery Hero aims to create a workforce that reflects the diversity of the communities it serves. By recruiting and retaining employees from diverse backgrounds, the company enriches its talent pool and promotes an inclusive culture. Delivery Hero also focuses on developing inclusive leadership skills to ensure that leaders champion diversity and create an inclusive work environment.
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Fostering environments of belonging: Delivery Hero strives to create an environment where every employee feels valued, respected, and supported. This involves promoting open dialogue, providing opportunities for employee resource groups, and implementing policies that prevent bias and discrimination. By fostering a sense of belonging, Delivery Hero encourages employees to bring their authentic selves to work and contribute to the company’s success.
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Leveraging global business and platform for inclusivity: Delivery Hero recognizes its platform’s potential to create more inclusive customer experiences and enhance equity in the communities it operates in. By leveraging its global reach and influence, the company aims to provide equal opportunities for all customers and support initiatives that promote inclusivity and equity.
Diversity and Inclusion Advisory Board
To further strengthen its commitment to diversity and inclusion, Delivery Hero established the Diversity and Inclusion Advisory Board (DAB) in 2021. The DAB serves as an internal and external body of expertise and experience. Its role includes providing advice, strengthening global inclusion efforts, and acting as ambassadors within and outside the organization to champion diversity and inclusion. The DAB plays a vital role in influencing and improving Delivery Hero’s diversity and inclusion initiatives.
Delivery Hero views diversity and inclusion as an ongoing journey, marked by continuous reflection, conversation, and change. The company is dedicated to creating and sustaining an environment of belonging, enhancing representation through equity, and empowering all employees to contribute to an inclusive workplace. As part of its commitment, Delivery Hero aims to use its platform to empower all communities it reaches and launch initiatives like the Delivery Hero Tech Academy to promote diversity in the technology industry.
By prioritizing diversity and inclusion, Delivery Hero not only creates a positive work environment but also strengthens its ability to adapt and thrive in a diverse and dynamic marketplace.
Delivery Hero’s Market Expansion
As a global leader in the online food ordering industry, Delivery Hero has been experiencing significant market expansion, particularly in Asia and Latin America. Let’s explore the company’s growth in these regions and its success in specific markets.
Growth in Asia and Latin America
Delivery Hero’s presence in Asia and Latin America has been a driving force behind its rapid growth. According to the company’s newsroom, its Asian business has been growing at a staggering rate of over 500% per year, while its Latin American business has seen growth of over 300% in the past year alone. This growth highlights the company’s strong position and popularity in these regions.
Approximately 35% of Delivery Hero’s orders come from Asia and Latin America, further emphasizing the importance of these markets in the company’s overall success. The company’s commitment to expanding its operations and capturing market share in these regions is a central part of its long-term strategy, as stated by CEO Niklas Östberg.
Success in the Korean Market
One notable success story for Delivery Hero is its presence in the Korean market. The Korean brand YoGiYo, which is part of Delivery Hero, has achieved remarkable results. YoGiYo generates around 1 million monthly orders through its online channel alone, resulting in over $2 million in monthly revenue. This success can be attributed to YoGiYo’s strong marketing strategy, which includes an annual budget of over $40 million and engaging top actors for TV advertising campaigns.
Expansion in Latin America
Delivery Hero has made significant strides in expanding its presence in Latin America. The company has expanded its service provider portfolio in the region through acquisitions and partnerships. For instance, Delivery Hero acquired the Brazilian platform Subdelivery, based in São Paulo, which holds an exclusive contract for offering Subway products. This acquisition has strengthened Delivery Hero’s presence in the Latin American market.
The company’s Latin American service providers, including PedidosYa, Click Delivery, Sinimanes, and Subdelivery, play a crucial role in catering to the diverse needs of customers in the region. By expanding its reach and acquiring local platforms, Delivery Hero is able to better serve the Latin American market.
Delivery Hero’s focus on market expansion in Asia and Latin America demonstrates its commitment to long-term growth and capturing opportunities in emerging markets. The company’s strong presence in these regions, coupled with its extensive global reach, positions it as a key player in the online food ordering industry.
To learn more about Delivery Hero’s strengths, be sure to check out our articles on the company’s business model and market share. Additionally, explore the company’s strategies for leveraging its strengths and addressing weaknesses in our articles on opportunities for Delivery Hero and weaknesses of Delivery Hero.
Delivery Hero’s Marketing Strategy
Delivery Hero, a leading player in the online food ordering industry, has developed a robust marketing strategy that focuses on convenience, customer engagement, localization, and a technology-driven platform to enhance the overall customer experience.
Convenience and Customer Engagement
Delivery Hero understands the importance of convenience when it comes to food delivery. Their services provide a strong sense of convenience, attracting and engaging customers with ease. By leveraging the emotional connection to food, Delivery Hero involves customers throughout the entire experience, from ordering to delivery. This approach helps to build a loyal customer base and encourages repeat orders (Forbes).
Localized Marketing Approach
Delivery Hero recognizes the importance of adapting their marketing efforts to diverse markets. They employ a localized marketing approach, tailoring their strategies to specific regions and cultures. This approach allows them to connect with customers emotionally and establish a strong presence in each market. Delivery Hero utilizes a wide range of social media channels, such as Facebook and YouTube, to reach their target audience effectively.
Technology-Driven Platform
Delivery Hero’s marketing strategy capitalizes on their innovative and technology-driven platform. They incorporate artificial intelligence algorithms to predict food orders, providing customized recommendations for users. This level of personalization enhances the user experience and makes the ordering process smoother. By leveraging technology, Delivery Hero ensures that their platform remains at the forefront of the industry, meeting the evolving needs and preferences of their customers.
Emphasis on Customer Experience
A key aspect of Delivery Hero’s marketing strategy is their emphasis on customer experience. They understand that building an emotional connection with customers is vital. To achieve this, Delivery Hero focuses on creating engaging content, promotions, and storytelling that resonate with their audience. By making the process of ordering food online enjoyable and memorable, Delivery Hero enhances the overall customer experience and establishes a strong brand presence.
By prioritizing convenience, customer engagement, localization, and a technology-driven platform, Delivery Hero has developed a marketing strategy that sets them apart in the online food ordering industry. Their focus on enhancing the customer experience and building emotional connections with their audience has contributed to their success and market leadership.
