Deliveroo to Exit Hong Kong Business, Shares Edge Higher

Deliveroo (LON: ROO) shares edged higher in early Monday trading after it announced the decision to exit the Hong Kong market. 

The company revealed it is selling certain assets to rival foodpanda while closing the remainder of its operations. Deliveroo has appointed liquidators to oversee the shutdown efficiently.

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After declining over 7% in the last week, Deliveroo is up just over 1% so far in today’s session, trading at around 126.5p a share.

The food delivery firm cited Hong Kong’s market dynamics and its focus on disciplined capital allocation as key reasons for the exit, stating that continuing operations in the region would not be in shareholders’ best interests. 

Deliveroo reported that in 2024, Hong Kong accounted for 5% of the Group’s Gross Transaction Value (GTV) but had a negative five-percentage-point impact on International GTV growth. 

They added that the market remains adjusted EBITDA negative.

Deliveroo Hong Kong’s platform will continue operating until 7 April 2025 to facilitate a smooth transition.

Eric French, Deliveroo’s Chief Operating Officer, commented: “We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved in our operations in Hong Kong. We have been proud to serve so many people such amazing food over the past nine years.”