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

Delivery Hero, a global food delivery company, is facing intense competition in various markets, but it has managed to overcome the challenges by focusing on growing its subscriber base, according to CEO Niklas Östberg. The company's guidance for 2026 was recently revised upwards, indicating that the situation is expected to improve. Östberg believes that competition may have been "pretty brutal" in certain markets, but it is not as intense as it was last year.

The company is increasingly relying on subscription plans to retain customers and maintain its market share, as these programs encourage repeat orders and reduce customer churn. In South Korea, 50% of its customers are subscribers, while in Saudi Arabia, the figure is around 60%, helping the company to withstand years of intense competition.

Delivery Hero has expanded its offerings beyond food delivery, which helps customers see more reasons to subscribe and increases loyalty. The company recently agreed to sell its Foodpanda business in Taiwan to Singapore's Grab, following pressure from large shareholders to carry out strategic reviews.