United Kingdom-based food delivery service platform Deliveroo is quitting its Hong Kong operations.

The platform said its business closure in Hong Kong will be conducted through selling certain assets to competitor foodpanda and closing others.

Deliveroo Hong Kong has nominated liquidators to manage closure of the Hong Kong business and the remainder of its assets in the most efficient way possible. Deliveroo Hong Kong’s platform will remain in operation until April 7.

ALSO READ: Deliveroo eyes consumer preference for delivery firms

In a statement on Monday, the delivery service platform cited several dynamics specific to the Hong Kong market which had led the company to consider strategic options and, given the group’s commitment to disciplined capital allocation, determine that it would not serve shareholders’ best interests to continue to operate in Hong Kong.

“In 2024, Hong Kong represented 5 percent of group’s gross total volume (GTV) and had a 5 percentage point negative impact on international GTV growth. The (Hong Kong) market remains negative based on the adjusted EBITDA (earnings before interest, taxes, depreciation and amortization),” according to the statement.

Deliveroo Chief Operating Officer Eric French said: “We want to thank all our employees, consumers, riders and restaurant and grocery partners who have been involved in our operations in Hong Kong. We have been proud to serve so many people such amazing food over the past nine years.”

READ MORE: SF Intra-city offers HK delivery drivers better pay

Established in 2013, Deliveroo works with approximately 181,000 restaurants, grocers and retail partners, as well as around 135,000 riders to provide on-demand delivery services in Belgium, France, the Hong Kong Special Administrative Region, Italy, Ireland, Kuwait, Qatar, Singapore, United Arab Emirates and the UK.

Delivery Hero, the parent company of foodpanda, said it has signed an agreement with Deliveroo to acquire some of its assets in Hong Kong through its subsidiary foodpanda Hong Kong. Under the agreement, current customers and couriers of Deliveroo will be directed to the foodpanda platform, and some restaurants and daily necessities merchants will also board the foodpanda platform.

foodpanda said that this transaction shows its parent company’s continued investment in the Hong Kong market, fully demonstrating its commitment to building a sustainable ecosystem for the local food delivery industry.

ALSO READ: Deliveroo gains ground in Hong Kong neighborhoods

Adam Samdin, assistant economist at UK-based think-tank Oxford Economics, said that the strength of the Hong Kong dollar, due to the currency link with the US dollar, will likely encourage spending outside of Hong Kong.

“Part of what drives the price differential between Hong Kong and the Chinese mainland is the strong Hong Kong dollar. With the US dollar and yuan likely to remain elevated in 2025, the price differential is unlikely to narrow significantly this year. We do not think these trends will reverse in 2025, and expect only mild growth in consumption,” Samdin argued.