Delivery Hero is seeking to finally turn a profit by offering advertising space and allowing its customers to delay payments on purchases.
The German-based company has launched a buy now, pay later (BNPL) service in the Middle East and North Africa as part of a trial, its chief financial officer Emmanuel Thomassin told the Financial Times.
The BNPL sector has seen impressive growth over the past 18 months and Thomassin is confident that it could lead to increased basket spend and more frequent orders.
“There’s a lot of benefit for offering that kind of service,” he added.
Thomassin also claimed Delivery Hero wants to better leverage its platform to grow ad sales to “fuel the profit line.”
Food delivery firms such as Instacart have ventured into advertising quite successfully and Delivery Hero is looking to do the same.
Delivery Hero finally announced on Monday that its food delivery division would break even in the second interim of the year.
The company is looking to try to emulate Amazon’s credit move where as a consumer you are eligible for an Amazon Credit Card and if you are a supplier, Amazon will cover the warehousing costs in return for a cut of revenue.
Thomassin’s comments only just after Delivery Hero announced it was winding down its food delivery operations in Germany, only four months after relaunching the service in the country.
The Berlin-based food delivery firm Foodpanda said it would stop operating in six German cities including Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart, according to a press release.
The company said it would instead focus on piloting new product features in central Berlin and has also said it has plans to sell its Japanese unit Foodpanda Japan in the first quarter of 2021.