Germany’s Delivery Hero expects its food delivery business to break even during the second half of 2022, as demand soars with more people eating in since the pandemic began.
The company expects adjusted core earnings of up to 100 million euros ($113.24 million) in the fourth quarter, while investments related to its quick commerce business are estimated to peak in the first quarter and gradually decline thereafter.
The German group has grown rapidly during the coronavirus crisis and has invested heavily in the highly competitive quick commerce space, which aims to deliver goods in as little as 10 to 15 minutes.
Delivery Hero, which acquired a majority stake in Spanish delivery startup Glovo last month, said it is now holding about 83% of the company on a non-diluted basis. In September 2020, it acquired Glovo’s operations in Latin America.