Deliveroo PLC (LSE:ROO) has announced it is selling up and moving out of Hong Kong after nine years, suggesting it was not a "disciplined" use of its capital.
After nine years of operating in the special administrative region of China, the business represented 5% of the group's gross transaction value but remained loss-making on an EBITDA level.
Liquidators have been appointed to close some of its assets, the FTSE 250-listed company said, while other parts of the business are being sold to Foodpanda, a Singapore-based food and grocery delivery platform owned by Delivery Hero.
"There are several dynamics specific to the Hong Kong market which led the board to consider strategic options and, given the group's commitment to disciplined capital allocation, determine that it would not serve shareholders' best interests to continue to operate in Hong Kong."