The archive · Consumer Apps · Strategic decision · 2012–2023
HungerStation's Saudi delivery bet pays twice: Delivery Hero buys full control for $297M
Saudi app HungerStation (est. 2012) bet a local brand could win the kingdom; Foodpanda took a majority in 2016, Delivery Hero paid $297M for the rest in 2023.
HungerStation
What the business is
HungerStation is a Saudi food-delivery app founded in 2012 by Ebrahim Al-Jassim and Hossein Bukhamseen, connecting restaurants with customers in Saudi Arabia and Bahrain; Delivery Hero called it the kingdom's leading delivery player with 10,000+ partners.
How it started
Ebrahim Al-Jassim and Hossein Bukhamseen founded HungerStation in 2012 to bring Saudi Arabia's fragmented restaurant delivery into one app, building a local brand in a market where global food-delivery platforms were still absent (Wamda).
What happened
In August 2016, Rocket Internet's Foodpanda acquired a majority stake; Delivery Hero absorbed Foodpanda later that year, so HungerStation entered its portfolio. Under Delivery Hero, HungerStation kept growing: FY2022 revenue rose 36% to €609M with positive EBIT above €50M, and it became the leading delivery player in Saudi Arabia, connecting 10,000+ partners (Delivery Hero press release; The National).
How it ended up
Acquired: on 2023-07-21 Delivery Hero bought the remaining 37% of HungerStation for $297M, taking full ownership; HungerStation continues as an operating Delivery Hero subsidiary in Saudi Arabia and Bahrain.
Background
HungerStation is a Saudi food-delivery app founded in 2012 by Ebrahim Al-Jassim and Hossein Bukhamseen, operating in Saudi Arabia and Bahrain. Its bet was that Saudi Arabia's fragmented restaurant delivery would consolidate around one app-based platform — and that a locally built brand, tailored to the market, could win that position before global players localized (Wamda).
In August 2016, Rocket Internet's Foodpanda acquired a majority stake in the company; when Delivery Hero took over Foodpanda later that year, HungerStation entered the German group's portfolio. The bet paid off commercially: in FY2022 HungerStation grew revenue 36% to €609 million with positive EBIT above €50 million, and Delivery Hero called it the leading food-delivery player in Saudi Arabia, connecting more than 10,000 partners (Delivery Hero press release, July 2023).
On 21 July 2023, Delivery Hero bought the remaining 37% of HungerStation Holding for $297 million, taking sole ownership — a price it called 'highly attractive' relative to the Saudi business's earnings. The National reported HungerStation counted more than 20,000 partner restaurants, about 65% of the market.
What has to be true
- HungerStation is a clean Gulf example of a local-first bet winning a market before global platforms did.
- The 2016 majority stake and the 2023 $297M buyout are both documented in first-hand and news sources, so the numbers are verifiable.
- The FY2022 figures (36% growth, €609M revenue, EBIT above €50M) show the bet became a real business, not just a story.
- It contrasts with Gulf delivery rivals that burned cash: HungerStation's brand and market position were valuable enough for two acquirers to pay.
What can be applied
Winning the home market early made HungerStation an acquisition target twice: a majority stake in 2016, then $297M for the rest in 2023 — local market position, not tech, was the asset.
Aftermath
After July 2023, HungerStation operates as a fully owned Delivery Hero subsidiary serving Saudi Arabia and Bahrain; per the July 2023 press release it connects 10,000+ partners and in FY2022 posted €609M revenue with positive EBIT. Delivery Hero's CEO tied the buyout to Saudi Vision 2030, and The National reported the brand remains the group's Saudi delivery front.
Sources
- Delivery Hero reinforces commitment to the Kingdom of Saudi Arabia by taking sole ownership of HungerStation
- Germany's Delivery Hero takes full control of Saudi subsidiary HungerStation for $297m
- Delivery Hero acquires remaining shares of HungerStation
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