Delivery Hero Eyes Advertising, Buy-Now-Pay-Later to Grow Sales
(Bloomberg) -- Delivery Hero SE is looking to expand newer business offerings including selling advertising and allowing consumers to delay payments on purchases, both of which could help the company grow sales as it moves closer to profitability.
The company has rolled out a buy-now-pay-later service in the Middle East and North Africa as part of a test, Chief Financial Officer Emmanuel Thomassin said in an interview Tuesday. Delivery Hero also wants to better leverage its platform to grow ad sales, he said.
Advertising has proved an attractive source of revenue for established delivery firms such as Instacart Inc. and Thomassin said investing could generate new sales and “fuel the profit line.”
On Monday, the Berlin-based company said its food delivery business would break even in the second half of the year, a projection that includes the recent acquisition of the Spanish startup Glovo.
Products that allow consumers to pay for purchases in installments have surged in popularity. Thomassin said such an offering can lead to increased basket sizes and more frequent orders.
“There’s a lot of benefit for offering that kind of service,” he said.
Delivery Hero is also looking at broadening its financial-technology offerings such as providing financing to vendors in collaboration with banks.
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