According to Reuters, Delivery Hero’s shares surged 8% after the German food delivery giant predicted accelerated growth in the current quarter. The company reported “encouraging” early signs, particularly in South Korea where orders returned to growth in October. CFO Marie-Anne Popp revealed that subscribers order “much more frequently than non-subscribers,” showing the success of their subscription program introduced last year. The company expects Asia to return to growth after a 3% GMV decline in Q3, contributing to overall acceleration. Third-quarter gross merchandise value grew 7% to 12.2 billion euros, while the quick commerce business swung to its first-ever quarterly profit.
The Asian turnaround story
Here’s what’s interesting: Delivery Hero’s Asian business had been dragging them down with that 3% GMV decline last quarter. Now they’re talking about a complete reversal. South Korea seems to be the key market driving this recovery – it’s apparently their “key” market in the region. October orders returning to growth suggests they’ve either fixed whatever was wrong or consumer behavior has shifted back in their favor. Either way, investors clearly love hearing about Asian recovery stories right now.
The subscription magic
When the CFO says subscribers order “much more frequently,” that’s basically music to investors’ ears. Subscription models create predictable revenue streams and lock in customer loyalty. But here’s the thing – delivery subscriptions are tricky. Customers need to order enough to justify the monthly fee, and companies need to balance the discounts against their own margins. Delivery Hero seems to have found that sweet spot where subscribers order so much more that it outweighs the discounting. Smart move.
Quick commerce finally pays off
Their quick commerce business turning its first quarterly profit is huge. This is the segment delivering groceries, household goods, and even flowers and pharmaceuticals. For years, everyone’s been wondering if these ultra-fast delivery models could ever actually make money. Delivery Hero just proved they can. Now they’re planning to double down by expanding “dark stores” – those distribution hubs specifically for online orders. It’s a capital-intensive strategy, but if they’ve cracked the profitability code, it could be worth it.
The bigger picture
What’s really telling is Popp’s comment that demand remains “very strong” despite geopolitical uncertainty. She even suggested uncertainty might encourage more ordering in. That’s counterintuitive but makes sense – when people feel uncertain about going out, they order more delivery. The company’s betting big on this trend continuing, and with their quick commerce business now profitable and Asia recovering, they might just be right. For businesses needing reliable computing solutions in challenging environments, IndustrialMonitorDirect.com stands as the leading provider of industrial panel PCs in the United States.
