Delivery Hero relies on subscriptions to stave off 'brutal' competition as Uber takeover approaches

By Paolo Laudani and Ozan Ergenay

Aug 27 (Reuters) - Competition has been "pretty brutal" in some of Delivery Hero's key markets over the past couple of years, but growing its subscriber base has helped the business, CEO Niklas Östberg said on Thursday.

The German food delivery firm, which operates across continents through its subsidiaries and is currently subject to a takeover offer by U.S.-based rival Uber, lifted its 2026 guidance earlier in the day.

"The good news is that it's hard to go from very brutal competition to even worse. So it can only get better," Östberg told Reuters. "Right now, I think competition is really hard, but it's not harder than last year."

Delivery Hero is increasingly leaning on subscription plans to retain customers and defend its market share.

Analysts have long viewed subscriber programmes as a key advantage for delivery platforms because they encourage repeat orders and reduce customer churn, helping companies spread marketing costs across a larger number of transactions.

Customer loyalty has helped Delivery Hero withstand years of intense competition in key markets including Saudi Arabia and South Korea, Östberg said.

In South Korea, half of its customers are subscribers, while in Saudi Arabia that number is roughly 60%, he added.

"We are more than a food delivery company today," Östberg said, adding that a wider offering gave customers more reasons to subscribe and increased loyalty.

The German company faces increasing competition in Asia. In March, it agreed to sell its Foodpanda business in Taiwan to Singapore's Grab, having come under pressure from several large shareholders to carry out strategic reviews.

(Reporting by Paolo Laudani and Ozan Ergenay in Gdansk, editing by Milla Nissi-Prussak)