Delivery Hero’s second-largest shareholder, Aspex Management, has issued an ultimatum: oust CEO Niklas Östberg unless the company divests non-core assets. The Hong Kong-based hedge fund, holding 9.2% of shares, cites weak profitability and a 30% stock plunge to €5bn valuation as justification. In a March 12 letter, Aspex accused Delivery Hero of mismanaging its sprawling global operations across 70 countries, warning the board to act swiftly or face legal action, including replacing leadership.

The pressure coincides with Delivery Hero’s strategic review, which targets underperforming markets in Asia, the Middle East, and Latin America. Shares have cratered from €130 in 2021 to €17, reflecting investor frustration. Competitors like China’s Meituan are gaining ground in key regions, exacerbating Delivery Hero’s struggles. CEO Östberg insists the company is “evaluating all strategic options,” but critics argue his leadership has failed to stabilize profitability amid intensifying competition.

Regulatory risks compound the crisis. In March, an Italian court placed Foodinho (Glovo’s local unit) under judicial supervision over rider treatment allegations. The EU also fined Delivery Hero €329mn last year for antitrust violations in its Glovo acquisition. Meanwhile, largest shareholder Prosus plans to slash its 27% stake to single digits by 2026, further destabilizing governance.

Delivery Hero’s board, led by chair Kristin Skogen Lund, defends Östberg, calling him indispensable despite shareholder anger. Prosus’s pending stake reduction adds uncertainty, with plans for a block sale or gradual market offloading. Aspex’s threat highlights a governance tipping point, testing Delivery Hero’s ability to balance operational expansion with financial discipline.