Deliveroo, the UK-based food delivery service, has announced its decision to withdraw from the Hong Kong market by April 2024, ending a nearly nine-year presence in the region.

The company confirmed it has reached an agreement to sell certain segments of its Hong Kong operations to Singapore-based Foodpanda, a subsidiary of Delivery Hero, though the financial details of this transaction were not disclosed.

In addition to this sale, Deliveroo has indicated that it will close other components of its Hong Kong business.

The company has appointed liquidators to manage the winding down of these operations efficiently.

Deliveroo’s online ordering platform will remain operational until April 7, 2024, allowing customers to continue accessing the service until the final date.

The decision to exit the market was influenced by various dynamics unique to the Hong Kong environment.

Deliveroo emphasized its commitment to disciplined capital allocation, asserting that continuing operations in Hong Kong was not in the best interests of shareholders.

In its last financial report, it was noted that the Hong Kong division accounted for 5% of the group's gross transaction value (GTV) last year but remained unprofitable on an underlying earnings basis.

Additionally, the Hong Kong operation negatively impacted international GTV by five percentage points, contributing to the decision for divestment.

Chief Operating Officer Eric French expressed gratitude towards employees, consumers, riders, and partners in the city, acknowledging their contributions over the years.

He noted the company's pride in having served the local community with food delivery services for nearly a decade.