LONDON, May 26 (Reuters Breakingviews) – Concise insights on global finance.
STUFFED MEAL. Delivery Hero (DHER.DE) is sharpening up its delivery skills. The company led by Niklas Oestberg on Wednesday said it is spinning off its Balkan units to Glovo, a Spanish delivery company it has a 37% stake in. Glovo will pay Oestberg 170 million euros ($208 million) for the businesses.
It’s a smart move. Oestberg doesn’t disclose revenue on a country level, but the units he’s selling consist of six countries out of the 14 in his European markets, which between them generated 136 million euros in the three months to March. He also bought some Latin American units from Glovo last year. Getting rid of the unwanted assets can allow Oestberg to focus on the core markets like fast-growing Asia and Germany, where he is beginning a fresh battle with rivals Just Eat Takeaway.com (TKWY.AS) and Uber Technologies (UBER.N). And with Glovo recently valued at $2.3 billion, Oestberg may still make money when it comes to list. One day, however, Glovo may become a formidable competitor in its own right. (By Karen Kwok)
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