Berlin, Germany – Delivery Hero, the German food delivery giant, announced plans to merge two of its European businesses, Foodora and Yemeksepeti, with its Asian counterpart, Foodpanda. The move, aimed at streamlining operations and achieving greater efficiency, will also see a reduction of fewer than 200 employees across the company.

The consolidation strategy comes as Delivery Hero faces increased competition in the global food delivery market, with players like Uber Eats and DoorDash aggressively expanding their reach.

“By merging these businesses, we can leverage the strengths of each platform and create a truly global powerhouse,” said Niklas Östberg, CEO of Delivery Hero. “This will allow us to better compete in a rapidly evolving market.”

The merger will see the integration of Foodora’s operations in Germany, Austria, and Switzerland with Yemeksepeti’s Turkish presence. Both brands will be folded under the Foodpanda umbrella, which operates in Southeast Asia, the Middle East, and other regions.

The move is expected to result in job losses, with Delivery Hero confirming that fewer than 200 employees will be affected. The company has stated that it will provide affected employees with support during the transition.

The merger is expected to be completed in the coming months. Analysts believe the move could help Delivery Hero achieve greater economies of scale and improve its profitability. However, some industry experts have expressed concerns about the potential impact on the customer experience, particularly in terms of local market knowledge and delivery times.

It remains to be seen how the merger will impact Delivery Hero’s competitive landscape. However, the move signals a clear intention to consolidate its position and achieve greater efficiency in a fiercely competitive market.