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Sensor Tower · Abraham Yousef · April 2023
Delivery Hero Experiences Slowdown in App Growth Post-Pandemic
Delivery Hero's worldwide organic app downloads fell 19% YoY in 1Q23, according to Sensor Tower's Publisher Breakdown report. The report also showed that acquired downloads represented 34% of total downloads compared to 16% in 1Q22. Delivery Hero's top five largest apps by 1Q23 monthly active users saw a continued fall in user growth compared to last year, with foodpanda seeing a 2% YoY decrease in 1Q23. The company's two largest Asian brands, foodpanda and Woowa Bros, saw a 4% and 2% YoY decline in 1Q23 Asia MAUs, respectively.
Key Takeaways:
Sensor Tower Publisher Breakdown provides users with a holistic view of a company’s portfolio by including all of the various apps under that publisher in one entity. With this enhanced visibility into a publisher’s various app properties, companies with multiple apps, such as Delivery Hero, can be investigated
Per ST data, as of 1Q23, acquired (inorganic)2 worldwide downloads of Delivery Hero’s apps represented 34% of total downloads compared to 16% in 1Q22
Excluding the acquired app properties since 2020, Delivery Hero’s worldwide organic downloads fell 19% YoY in 1Q23 compared to the inorganic total which held steady with +2% YoY growth in the same time period.
Though dependent on acquisitions for growth, not all of the newly acquired apps are maintaining the same pace of growth seen during the pandemic. The easing of lockdown restrictions globally coupled with less discretionary income available to spend on non-essential goods and services due to record-high levels of inflation has led to a decrease in app user growth and engagement for Delivery Hero’s top apps
Delivery Hero’s top five largest apps by 1Q23 MAUs saw a continued fall in user growth compared to last year: foodpanda saw MAUs decrease 2% YoY in 1Q23 (vs +6% in 1Q22), while Glovo saw a 4% YoY increase (vs +10% in 1Q22), +7 % on PedidosYa (vs +47% in 1Q22), -2% on Woowa Bros (vs +21% in 1Q22), and -6% on Yemeksepeti (vs +46% in 1Q22)
ST data showed a decrease in user growth for Delivery Hero’s two largest Asian brands during 1Q23 as foodpanda and Woowa Bros saw a 4% and 2% YoY decline in 1Q23 Asia MAUs, respectively. This weakness was corroborated by the company’s 1Q23 trading update, where it reported a 7% YoY decline in GMV in Asia (its largest contributing region by total GMV) as it lapped a tough 1Q22 comp that was influenced by lockdown restrictions still being present in key Asian countries
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