Delivery Hero, parent company of Glovo, has ended the search process for a new CEO with an unexpected outcome: the continuity of its current CEO in the position, despite the fact that in May it had been officially communicated that he would leave and in the full context of the acceptance of the purchase offer by Uber at the beginning of September.
"Niklas created Delivery Hero and knows it better than anyone. With the transactions with Uber and SSW underway, we are pleased that Niklas continues to lead the company in this new stage," indicated the chairwoman of the Supervisory Board of Delivery Hero, Kristin Skogen Lund, in a brief statement.
In May, both the supervisory body and Östberg himself had announced the departure of the executive who started the company 15 years ago, considering that it was an "ideal" moment to initiate the transition at the top and select a new CEO.
"Delivery Hero is not just the platform, but also the people who build it. I am extremely proud of the team that has created this company over the last 15 years and I fully trust that they will continue to generate value in the coming years," he stated then.
However, the latest movements in the group's shareholding have altered those plans and led to reversing the initial decision, so Östberg will remain at the helm of the company, with the aim of conveying stability during a phase of significant transformations.
One of Delivery Hero's investors, according to the German newspaper "Handelsblatt," had pressured for Östberg's departure to materialize, but the agreement to divest his shares in favor of Uber has completely changed the scenario.
"Since the announcement of the acquisition, I have had more time to focus on the company, prioritizing our organization and creating a top-notch customer experience. It is fantastic to see the results: our Everyday app strategy is working and growth and profitability are accelerating. Now I am more motivated than ever to continue leading the company in this new stage," Niklas Östberg indicated this Thursday.
Agreement with Uber for 14.8 billion and asset sale to SSW
The board of directors of Delivery Hero gave its approval at the beginning of September to the proposal presented by Uber Technologies, valued at 14.8 billion dollars (12.77 billion euros), and plans to recommend to shareholders that they support the operation.
At the same time, Delivery Hero has signed an independent agreement with SSW Partners, conditioned on the completion of Uber's takeover bid and other usual clauses, under which this investment firm will take control of the German multinational's businesses in 14 markets, mainly in those where Uber Eats and Delivery Hero compete simultaneously, in exchange for about 1.6 billion dollars (1.398 billion euros).
In detail, the assets that will be transferred to SSW include foodora (Austria, Czech Republic, Norway, Sweden); efood (Greece); Foody (Cyprus); Glovo (Moldova, Poland, Portugal, Romania, and Spain); PedidosYa (Chile, Ecuador); and Yemeksepeti (Turkey).