Delivery Hero (ETR:DHER) reported accelerating growth in its third-quarter 2026 trading update, with the food delivery company surpassing 1 billion orders in a quarter for the first time and raising its full-year outlook for growth, adjusted EBITDA and free cash flow.
Chief Executive Officer Niklas Östberg described the period as an “exceptionally strong quarter,” saying the company’s growth rate had accelerated for a fourth consecutive quarter. Gross merchandise value, or GMV, increased 14% year over year on a like-for-like basis to €13.9 billion, while revenue rose 22% on the same basis to €4.3 billion.
In reported currency terms, GMV also increased 14%, while revenue grew 23%, according to Chief Financial Officer Marie-Anne Popp. The company said currency was no longer a drag on group-level GMV growth.
Quick Commerce and Advertising Drive Revenue Growth
Delivery Hero said revenue continued to outpace GMV due to growth in quick commerce and advertising technology revenue. Quick commerce GMV grew 39% on a like-for-like basis during the quarter, while revenue from Integrated Verticals, primarily the company’s Dmart stores, increased 43% to €1.2 billion.
Popp said quick-commerce adoption was strong in South Korea through subscriber offers, while the company also added capacity in the Middle East and North Africa and maintained momentum in Latin America. She added that same-store sales remained the largest growth driver as Delivery Hero expanded its store network.
The company’s platform business, which includes GMV transacted through its apps and websites, recorded 14% GMV growth to €13.9 billion and 17% revenue growth to €3.3 billion.
Östberg attributed the results to Delivery Hero’s “Everyday App” strategy, which emphasizes broader selection, improved customer value and faster service. The company said its subscription programs, which offer lower delivery fees and exclusive deals, now account for more than half of GMV.
He also said the company is using artificial intelligence to speed product development, including through an in-house autonomous coding agent called HeroGen. Delivery Hero added that it had generated nearly €1 billion in incremental quarterly revenue over the past year without increasing marketing spending.
Full-Year Guidance Raised Again
Following the third-quarter performance, Delivery Hero increased its 2026 guidance:
- Like-for-like GMV growth is expected to be 10% to 12%, up from prior guidance of 9% to 11%.
- Like-for-like revenue growth is projected at 18% to 20%, up from 17% to 19% previously.
- Adjusted EBITDA is expected to reach €980 million to €1.02 billion, compared with earlier guidance of €960 million to €1 billion.
- Free cash flow before extraordinary items is now expected to exceed €300 million, up from more than €250 million.
Popp said the higher free-cash-flow outlook reflected better working-capital performance supported by stronger GMV growth. The company plans to provide guidance for 2027 when it reports full-year 2026 results.
Östberg said improving customer acquisition costs and customer lifetime value could allow Delivery Hero to increase marketing investment modestly next year where returns justify it. He said the company would continue investing in customer experience and quick commerce while maintaining financial discipline.
Taiwan Sale Terminated; Uber Offer Remains Under Review
Delivery Hero also said the sale of its Taiwan business to Grab had been terminated after the local regulatory authority did not approve the transaction. Östberg said Delivery Hero will receive an agreed break fee from Grab, though he declined to disclose its amount because it is subject to a nondisclosure agreement.
He said Grab, rather than Delivery Hero, had decided not to appeal the ruling. Delivery Hero will evaluate the implications for its Taiwan operations but has no current plans to announce, Östberg said.
Meanwhile, Delivery Hero remains in the acceptance period for Uber’s takeover offer, which ends Nov. 5 at midnight Central European Time. An additional acceptance period is expected to run from Nov. 11 through Nov. 24. The company said regulatory reviews remain ongoing and that it still expects the transaction to close in the second half of 2027.
Östberg said the Taiwan decision had not changed the company’s view of the Uber transaction’s regulatory path. He said Delivery Hero had not heard negative feedback regarding antitrust reviews, while noting that Uber and its advisers are handling the regulatory filings.
Europe and South Korea Updates
During the question-and-answer session, Östberg said growth in some European markets has been constrained by changes to rider employment models and related regulation. Moving from freelance riders to employed riders can raise costs for consumers and worsen the customer experience, he said. Delivery Hero expects the implementation of the relevant Platform Work Directive requirements to be largely completed by year-end.
In South Korea, Östberg characterized the company’s growth as stable and healthy, though in the single digits due to the maturity and scale of the market. He said Delivery Hero sees further opportunities in the country and intends to invest to maintain customer experience.
On litigation, Östberg said the company’s case in Spain is likely to continue toward the Supreme Court, while discussions with an appointee in Italy have been constructive and have led to certain requested operational improvements.
About Delivery Hero (ETR:DHER)
Delivery Hero SE offers online food ordering and delivery services. It operates approximately in 70 countries in Asia, the Middle East, Africa, Europe, and Latin America. The company was founded in 2011 and is headquartered in Berlin, Germany.
