The acquisition of City Delivery will result in continuation of its expansion efforts. Where? Southeast Asia, of course
Food Runner, a Singapore-based food delivery company, today announced that it has acquired Philippines-based delivery company, City Delivery for an undisclosed amount. The deal comes eight months after Rebate Networks-backed DealGuru had established the stand-alone entity Food Runner.
Launched in 2009, City Delivery claims over 350 restaurant and food partners, along with pharmacies and florists. According to Food Runner’s website, the company has a presence in Malaysia, Singapore and Indonesia, and is planning to open soon in Thailand, Vietnam and the Philippines.
Lance Frey, CEO, Food Runner said, “The Philippines has seen some of the fastest economic growth in Asia for several years now. Manila has benefited from high levels of investment and a growing middle class.” He added that the company’s acquisition of City Delivery will only result in a continuation of its expansion efforts within Southeast Asia — which was described as having an enormous potential.
Ashley Jorge Co Kehyeng, Founder, City Delivery, said that the acquisition will allow them to learn and apply with Food Runner’s expertise and experience. He added, “I am confident that the acquisition will allow us to further improve our quality of service and expand our market reach.”
According to the official statement, Kehyeng will join Food Runner’s regional leadership team as the Vice President, International Strategy and Business Development, while remaining in City Delivery to guide it. He will be based in the Philippines.
Kehyeng told e27 that he sees the delivery market in the Philippines headed toward “an exciting time”. He noted, “Why are people buying anything online? Convenience. … The economy is doing really well and there’s a growing middle class.”
Doesn’t a growing middle class imply that people are eating out more than ordering online? Kehyeng answered traffic conditions might deter families from heading out for a meal at a restaurant. He said, “It’s all about convenience.”