July 24, 2023: On Friday, Delivery Hero, the German online food delivery company, said it is taking full right of its Saudi support in a trade valued at $297 million.

The company said it had bought the staying 37% stake in HungerStation, which uses Delivery Hero in Saudi Arabia, in a deal representing an effort from the Berlin-headquartered firm to expand its presence in the Middle Eastern food delivery market.

“We believe in the Kingdom of Saudi Arabia’s 2030 vision, ambition, and potential, and are committed to contributing to its ongoing success through HungerStation,” Niklas Östberg, CEO and Co-Founder of Delivery Hero, said.

Delivery Hero is one of Europe’s biggest food delivery companies, commanding a $10 billion market value.

The firm has had troubles in its home market of Germany, where it was forced to quit in December 2021 after losing out to Netherlands-based Just Eat Takeaway.com.

Food delivery is an intensely competitive sector with multiple companies operating. This has led to unavoidable consolidation, with various companies acquiring competitors to achieve scale.

HungerStation connects around 10,000 partners, including restaurants and grocery stores, with customers, Delivery Hero said in a statement Friday.

The deal will help the company build stronger ties with HungerStation and the rest of the group’s portfolio, Delivery Hero added.