start-ups

Takeaway.com acquires German food delivery services Lieferando

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Food delivery services have been booming for the past couple of years, and many players are trying their luck in what is becoming a quite crowded market in Germany. With the most recent acquisition Takeaway.com, an originally Dutch company active in Germany with daughter Lieferservice.de, has bought its competitor Lieferando. Takeaway is planning on merging the two brands, which brand will disappear however, remains to be seen. “Lieferando is an extraordinary successful business with the best product in the market. Together our goal is not only to become the market leader in Germany and Poland, but to build up the biggest online food ordering platform worldwide”, says Takeaway-founder Jitse Groen.

A consolidation has been rumored by industry experts over the past few months as the market for online food delivery is getting more and more dense. The high number of competitors was inevitably leading to acquisition proposals. The German press has been speculating that Lieferando shareholders will have fetched a price of over EUR 50million from Takeaway. Delivery Hero, who was also said to be in the race for Lieferando, apparently backed out of the deal unwilling to pay a price of this dimensions.

In the course of the completion of the deal, existing investors Prime Ventures and Macquarie Capital, the investment arm of the Australian investment bank renowned for its infrastructure investments, without hesitation injected another EUR 74million into the newly consolidated business. The investment is supposed to provide enough leeway to become #1 in the Germany online food delivery market.

Lieferando was founded in 2009 by Christoph Gerber, Jörg Gerbig and Kai Hansen and was backed by early-stage incubator Rheingau Ventures. In the past years, the company has raised more than EUR 20million from investors like DuMont Venture, Macquarie and the KfW and attracted media attention through massive tv-advertising. Lieferando’s management team will be given senior executive positions in Takeaway.com. That’s the way to merge two profitable and fast-growing companies and keeping everybody happy. At least for now…

 

Uber, Blacklane and Co. run into headwind from taxi lobbyists

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Taxis and limousines – what could have been expected to be an explosive blend seems to have plenty potential for conflict. Most recently, a taxi driver association in Berlin proceeds against chauffeur service Blacklane.

As more and more limousine and chauffeur-services have popped up in recent years, the taxi industry is alarmed and ready to put up a fight with (relatively) new, innovative start ups like Blacklane, Uber and MyDriver that are trying to steal market share away from them. The transportation market, especially in Germany, is highly regulated. The Passenger Transportation Act (“Personenbeförderungsgesetz”) regulates the environment for public transportation and sets out the rules. In order to protect the taxi industry, limousine services are for example not permitted to offer spontaneous rides to passengers in Germany. Thanks to numerous Online-Apps though, limousines can be directed to the next waiting customer via our smartphones, bypassing the just-mentioned. More and more, limousine and chauffeur-services are levering out the privileges that were held for decades by the taxi industry.

In the most recent case, the taxi association of Berlin-Brandenburg had complained about the fact that the new Blacklane Smarts only have one door, as taxis and rental cars need two doors on their right side due to safety reasons. Blacklane counters accordingly with a special permission of the Berlin State Office for Public Order of affairs, stating that “Smarts do not have a rear bench seat and because of that, all passengers can enter and exit the vehicle safely.”

Another recent dispute between Uber, Chauffeur Privè and several taxi drivers in Paris far exceeded the category lobbying. The striking and furious taxi driver, as reported by the Rheinische Post, are said to have thrown paint buckets at cars of the two companies, slashed their tires, broken windows and injured at least one passenger.

After all, the poor attempts of the taxi industry to hamper the irruption of new competitors into the transportation market won’t be successful. The revolution of the transportation market, with more and more concepts penetrating the market, has already advanced too far. Instead, the taxi industry should take on the fight and be encouraged to defend their market share. The taxi companies need to work on their service and quality in order to keep passengers. As of today, the taxi industry has a turnover that is three times the turnover of the limousine industry – but that could change.

Especially in big cities where the number of people owning a car is declining, the people rely on alternative mobility options: car-sharing for example but also limousine and chauffeur services are growing in demand. The innovative offers reflect the spirit of the time, while the coolness factor of a taxi ride is virtually zero. In addition to that, many business travelers have gotten used to the limousine service in the US and are looking for the same in cities like Berlin. Cabbies – look out! Here comes the future.

Picture: Blacklane