Explainer | It’s last orders at Deliveroo Hong Kong. What about the rest of the industry?
Deliveroo’s exit from Hong Kong market follows intense competition from Keeta and its own financial losses in the city
While food delivery platforms have become a staple of Hong Kong life in recent years, Deliveroo’s exit shows that the market is far from stable.
The London-based company announced on Monday that it would wrap up operations in Hong Kong on April 7, about four years after Uber Eats quit the local market over slower-than-expected growth.
Deliveroo’s time in the city was also marked by intense competition from Keeta, a platform under mainland Chinese delivery giant Meituan that came to Hong Kong in May 2023 and quickly snapped up a significant share of the market.
The Post discusses the industry’s revenue sources and how Deliveroo’s exit could affect businesses and consumers.
1. Why did Deliveroo decide to leave Hong Kong?
The company said the decision to quit the local market was the result of fierce competition and financial losses.
The company reported negative levels of earnings before interest, taxes, depreciation and amortisation, or Ebitda, in Hong Kong over the past year. This contrasted with general international growth, especially in Italy and the United Arab Emirates, it added.
