2016 has seen more food delivery mergers and acquisitions than 2012, 2013, and 2014 combined.

M&A activity among food delivery startups has seen a massive increase in recent years as venture capital funding has declined, and as smaller players in the space seek to be acquired, or risk shutting down. Among all food delivery startups, only 27 mergers or acquisitions took place between 2012 and 2014. This rose to 39 M&As in 2015, and 30 in 2016. So far in 2017, we have seen a handful of acquisitions.

Prominent food delivery players such as UK-based Just Eat and Germany-based foodpanda (recently acquired itself) picked up their pace of acquisitions in the last few years. Of Just Eat’s 13 acquisitions between 2012 and 2016, 10 acquisitions took place in either 2015 or 2016, including that of Spanish online food ordering platform La Nevera Roja. Similarly, 7 of foodpanda’s 10 acquisitions between 2012 and 2016 took place in either 2015 or 2016.

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We used CB Insights data to create a timeline of food delivery startup M&A activity between 2012 and 2016. For our graphic, we specifically looked at only those food delivery startups that had raised disclosed funding and did not limit to first exits only. Among these companies, only 9 mergers or acquisitions (M&As) took place between 2012 and 2014. This jumped to 8 M&As in 2015, and 11 in 2016.

We define food delivery as companies facilitating the delivery of food to users’ doors, including restaurant delivery, grocery delivery startups like Instacart, farm-to-table services like Door-to-Door Organics, meal delivery startups like Delivery Hero or Sprig, and meal kit services like Blue Apron.

Notes: We include mergers or acquisitions between 2012 and 2016 of companies with publicly disclosed funding. The graphic is not limited to first exits. Click the image to enlarge.

Food Delivery M&A Timeline 3.13.17

Key insights from the infographic above:

  • The most well-funded acquirees: Acquisitions of the 2 most well-funded food delivery startups acquired in the past five years both took place in 2016. This includes Germany-based Delivery Hero’s acquisition of global mobile food delivery platform foodpanda ($310M in total funding) in Q4’16, itself one of the most active acquirers in the space, and Lazada’s acquisition of Singapore-based grocery delivery platform RedMart ($58M in total funding) in Q4’16.
  • Notable earlier M&As: Although 2015 and 2016 have seen the lion’s share of acquisitions, notable deals involving well-funded companies have taken place in earlier years including Square’s acquisition of Caviar ($17M in total funding) in Q3’14, and GrubHub’s merger with Seamless ($50M in total funding) in Q2’13.
  • Diverse acquirers: Acquirers in the food delivery space stretch beyond food delivery itself, into industries including e-commerce, mobile payments, and communication technology. For example, Russia-based communication portal and email service Mail.ru acquired Russia-based online food delivery marketplace Delivery Club in Q4’16.
  • Spotlight on India: Outside of the US, India has witnessed a particularly high concentration of mergers and acquisitions in the food delivery space, with 6 deals between 2012 and 2016 among companies with disclosed funding. A few of the most significant deals include Runnr’s merger with TinyOwl in Q2’16, Rocket Internet’s acquisition of TastyKhana in Q4’14, and Nature’s Basket’s acquisition of Ekstop Shop in Q1’15.

See the full company list below:

Featured Mergers and Acquisitions
Company Acquirer / Merger Date
foodpanda Delivery Hero 12/12/2016
Delivery Club Mail.ru 11/3/2016
RedMart Lazada 11/2/2016
Wholeshare Direct Eats 8/29/2016
Foodist Stroer 8/9/2016
BuyFresco DelSuper 6/9/2016
Relay Foods Door to Door Organics 6/9/2016
TinyOwl Runnr 5/9/2016
SpoonRocket iFood 3/17/2016
La Nevera Roja Just Eat 1/19/2016
Greenling Farmhouse Delivery 1/16/2016
SpoonJoy Grofers 10/27/2015
BigZop AUTOnCAB 9/28/2015
OrderUp Groupon 7/16/2015
Delyver Retail Network BigBasket 6/12/2015
Yemeksepeti Delivery Hero 5/5/2015
Ekstop Shop Nature’s Basket 2/18/2015
SinDelantal.Mx Just Eat 2/16/2015
La Nevera Roja Rocket Internet 2/6/2015
TastyKhana Rocket Internet 11/17/2014
Caviar Square 8/4/2014
Delivery Club foodpanda 6/18/2014
Janamesa Hellofood 8/13/2013
Snapfinger Tillster 6/26/2013
Seamless GrubHub 5/20/2013
FreshRealm Calavo Growers 3/11/2013
Foodzie Joyus 6/5/2012
Munch On Me CollegeBudget 5/15/2012

 

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