October 10, 2018 / 6:21 AM / in 9 days

Food ordering service Takeaway's German orders up 40 percent in third-quarter

AMSTERDAM (Reuters) - Takeaway.com, the European online restaurant ordering service, said on Wednesday its third-quarter orders grew by 40 percent in the German market, where it is locked in an expensive fight for dominance with Delivery Hero.

Orders in Germany were 8.16 million, compared with 7.04 million a year earlier, the Dutch-based company said in a trading update.

Takeaway is by far the largest food ordering service in the Netherlands, where it is profitable. Overall orders were up 31 percent to 22 million.

Takeaway, which argues the online food ordering business will be highly profitable for just one player in each country, said earlier this year it surpassed Delivery Hero in the number and value of orders received in Germany.

The company said on Wednesday it will continue to step up investment in its food delivery service, which it views as a marketing tool rather than a potentially profitable business. Takeaway said it still expects to turn a profit on earnings before interest, taxes, depreciation and amortisation (EBITDA) by the third quarter of 2019.

Delivery Hero, which operates in the Americas and Asia as well as Europe, and is larger overall than Takeaway, said in September it does not expect to be profitable at the EBITDA level in 2019.

Shares in both companies have been declining since last month, when Bloomberg reported that Uber Eats service is in talks to purchase Britain’s Deliveroo. Neither company has commented.

(Corrects figures in headline, second and third paragraph; earlier story wrongly reported figures in euros instead of order numbers.)

($1 = 0.8688 euros)

Reporting by Toby Sterling; Editing by Subhranshu Sahu

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