By Joshua Kirby
Delivery Hero said it is continuing a review of its business after a major shareholder stepped up pressure on the food-delivery group amid a prolonged share-price slump.
Investor Aspex Management said "wholesale changes" in the management team would be required to address the company's issues, singling out Chief Executive Niklas Ostberg for criticism in a letter dated Tuesday addressed to the German company's supervisory board and seen by The Wall Street Journal.
The Hong Kong-based investment firm, which holds a little over 9% of Delivery Hero's share capital, said the company had failed to make progress on a strategic review of its business. Delivery Hero is looking at offloading many of its regional businesses, which includes brands like Glovo, Talabat and PedidosYa. It this week announced the disposal of its Foodpanda delivery business in Taiwan to Southeast Asian group Grab Holdings for $600 million in cash.
But Aspex said that disposal still isn't enough to generate value for shareholders.
"We therefore can only conclude, yet again, that there is no desire by the CEO to genuinely work in the interest of the owners of the company," it said.
"There is a real threat that the value of the company's remaining assets will be further impaired."
Delivery Hero said it acknowledged the Aspex letter.
"We are progressing with the strategic review and it remains an ongoing core focus of both the Management and Supervisory Board," a spokesperson said. The company declined to respond to the specific issues raised by Aspex.
Delivery Hero's share price has declined steadily since reaching a height of more than 132 euros apiece in 2021, when pandemic-era lockdowns spurred a boom in home-delivery services. The group has struggled to keep revenue above costs amid tough competition in many of the dozens of markets in which it operates. It has also been hit by changes to its employment model in the Spanish market, and by a heavy antitrust fine from European Union regulators last year. Shares traded down 4% at 15.845 euros in European early afternoon trading Tuesday.
Aspex's letter follows a previous missive earlier this month addressed directly to Ostberg. The investor in the letter criticized the company's strategy of expansion into dozens of markets and noted its struggle to boost profitability and generate cash flow.
Ostberg, who cofounded Delivery Hero in 2011 and has served as CEO since then, said in response that the company's falling share price didn't reflect performance.
"We continue to work diligently on improving profitability and further strengthening our operational performance," he said.
The company hopes to be in the black across all of its key markets by the end of next year, Ostberg told The Wall Street Journal in a separate interview this month.
Delivery Hero is due to set out its outlook for the year on Thursday. For last year, the group reported a rise in revenue but a decline in gross merchandise value--a key measure of transactions across its platforms--amid weakness in its Asian businesses.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
Delivery Hero is looking at offloading select assets and country operations. "Delivery Hero Must Shake up Leadership in Turnaround Efforts, Shareholder Says," at 1256 GMT, incorrectly said the company was looking at offloading many of its regional businesses.
(END) Dow Jones Newswires
March 24, 2026 10:12 ET (14:12 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments