Delivery Hero is the global leader in food delivery and quick commerce, with a presence in 74 countries and an enormous addressable population of 2.2 billion people. It holds the no.1 position in markets accounting for >90% of its gross merchandise value (GMV) in a winner-takes-most industry with three-sided network effects. Scale advantages compound though densities and operating leverage, providing durable barriers to entry. On demand delivery is still nascent and remains very underpenetrated with strong secular drivers, a massive addressable market and predictable cohort behaviour.
The company culture is highly decentralised, enabling agile operations and a local customer focus. Delivery Hero competes on quality of service as opposed to price. Investors have been skeptical as Delivery Hero prioritised growth over profitability in the past. They are now operating in a far more rational competitive environment with profitability rapidly improving, something that has also been well demonstrated in their more mature markets. Their high margin advertising products are of immense value to restaurants and consumer packaged goods (CPG) companies looking to reach affluent tech savvy consumers and we expect significant growth here in the future.