British meal delivery service Deliveroo will cease operations in Hong Kong by selling select assets to rival Foodpanda. The exit, slated for April 7, comes after nearly nine years of struggling against fierce market competition and accumulating losses.

In a statement, Deliveroo's board acknowledged several challenges unique to the Hong Kong market, which prompted the decision to close operations. The business in Hong Kong generated only approximately 5% of the company's overall transactions and was financially unviable, reporting negative earnings before interest, depreciation, and taxes (EBITDA) last year. This situation has led the company to appoint liquidators for the efficient wind-down of remaining assets.

Deliveroo's move is part of broader market dynamics, especially with increased competition from platforms like Foodpanda and recently, Meituan’s KeeTa, which significantly increased its market share. The sell-off aims to transition Deliveroo’s customers and riders onto the Foodpanda platform, thus merging resources to enhance service offerings. Foodpanda confirmed its commitment to growing its market presence while providing enhanced incentives for Deliveroo's riders to join its team.

Deliveroo's chief operating officer expressed gratitude to employees, partners, and customers: “We have been proud to serve so many people such amazing food over the past nine years.” This marks a poignant end for Deliveroo as it navigates its exit strategy amidst challenging circumstances in the competitive food delivery landscape of Hong Kong. For more details, visit Reuters and South China Morning Post.