Rocket Internet-incubated foodpanda has acquired Delivery Club in a move it says will make the combined companies Russia’s leading food delivery service with over 2,500 restaurants. The value of the deal was undisclosed. Delivery Club, which will continue operating under its own brand, was founded in 2009, shortly before foodpanda, and is available in 18 Russian cities.
Foodpanda recently said that it plans to reach 50 countries by 2015, which means it has five more countries to expand into by the end of this year. Ralf Wenzel, foodpanda’s global managing director, said the company not only plans to grow by launching in new markets, but also by deepening its reach in existing ones. After Russia, foodpanda plans to focus on growing in Southeast Asian countries.
“We want to consolidate the market, grow ourselves, and keep focusing on building operational capabilities,” says Wenzel.
Foodpanda has raised a total of $48 million from investors including Investment AB Kinnevik, Phenomen Ventures, iMENA Holdings, and Rocket Internet. Is most recent round of funding in February. While the company has a large war chest, it also competes with other well-funded delivery services, like Delivery Hero and Just Eat, so it makes sense why it would focus on acquisitions to expand.
Like other Rocket Internet properties, foodpanda has focused on emerging markets in Eastern Europe, Asia, Latin America, and parts of Africa, where launching a new business is not only relatively inexpensive, but also gives them a chance to build a customer service and logistics network that can help Rocket Internet’s businesses in other verticals.