Hong Kong’s privacy watchdog reviews Deliveroo’s data compliance amid exit

HONG KONG – Hong Kong’s Office of the Privacy Commissioner for Personal Data has initiated a compliance check on Deliveroo to safeguard customer and rider data as the company ceases operations in the city.

The Office of the Privacy Commissioner for Personal Data is implementing measures to ensure Deliveroo’s proper handling, deletion, or transfer of personal data in line with regulatory requirements.

This action follows Deliveroo’s decision to exit the Hong Kong market, where it has reported negative earnings before interest, taxation, depreciation, and amortisation since the spring of 2024.

The compliance check aims to prevent the misuse, leakage, or fraudulent use of personal data as the company winds down its operations.

Deliveroo’s departure intensifies competition between Delivery Hero’s Foodpanda and Keeta, another key player in the market.

As part of its transition, Deliveroo is shifting its riders and customers to Foodpanda, along with some of its partner restaurants and grocery stores.

The privacy watchdog has urged affected individuals to reach out with inquiries, emphasizing the significance of the compliance check.

“The compliance check has been commenced to ensure that the personal data concerned would not be misused, leaked, or fall into the hands of fraudsters for fraudulent activities,” the Office of the Privacy Commissioner for Personal Data stated.

This development comes shortly after Deliveroo announced its first annual profit since going public.The 12-year-old FTSE 250 company posted a profit of £3 million (US$3.8 million) in 2024, a stark improvement from a £32 million (US$40.5 million) loss in 2023.

This milestone marks the company’s first year of cash generation, following years of significant losses during its expansion from a startup to a publicly traded company on the London Stock Exchange in 2021.

Despite the profit, Deliveroo’s share price dropped 8% as analysts expressed concerns over “soft” expectations for future earnings.

The company attributed its improved financials to an expanded business model that now includes grocery deliveries, which accounted for 16% of sales in the second half of 2024.

Additionally, Deliveroo has broadened its offerings beyond food by adding brands such as Ann Summers, B&Q, The Perfume Shop, and Not On The High Street to its platform.

While Deliveroo’s recent profitability signals progress, it may take years before investors see significant returns.

The company has raised approximately £1 billion (US$1.3 billion) from venture capital investors and another £1 billion through its initial public offering.

As it navigates an uncertain consumer environment and ongoing operational adjustments, Deliveroo’s long-term financial outlook remains under scrutiny.

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