Delivery Hero in focus amid Grab and GoTo merger report
Delivery Hero shares slip in Germany. Market watchers point to a report suggesting Grab and GoTo have revived merger talks.
IGTV's Angeline Ong explains why a merger of the two rivals would be a double dose of bad news for Delivery Hero, in the region.
(AI Video Summary)
Grab and GoTo rumoured to have revived merger talks with Delievery Hero
The video is about checking on Delivery Hero and discussing a potential turning point for the company. It seems that Delivery Hero had a setback when Grab and GoTo, major competitors in Southeast Asia, were rumored to resume negotiations. This news initially caused Delivery Hero's stock to drop. However, these talks could actually benefit Delivery Hero because it decreases the chances of Grab acquiring their Foodpanda business.
Post-pandemic problems for delivery companies
Ong mentions that Delivery Hero's stock soared during the pandemic when people were stuck at home, but it has since leveled off as restrictions eased. Many delivery companies have had to make changes by cutting jobs and seeking mergers. Delivery Hero has been trying to sell their unprofitable units in Southeast Asia in order to become profitable while still growing.
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