The newest entrant to the local delivery market, Hugo, has been acquired by Delivery Hero, the world's leading local delivery platform.
The agreement will see Delivery Hero acquiring the multi-category marketplace's core food delivery and quick commerce business in Central America and the Caribbean.
According to Hugo Jamaica's General Manager Alyssa MooYoung, this acquisition could not have come at a better time as the company is expanding its service across the island.
“Currently, we are operating in Portmore, St Catherine and Kingston, and are about to launch in Montego Bay, St James. This acquisition will help to expand our reach and to improve our operational processes so that we can deepen our footprints here and across the Caribbean. It also places Jamaica as the key partner for their expansion into the English-speaking Caribbean.”
The transaction, valued at US$150 million, is expected to close in the first quarter of 2022.
“We want to reassure our customers that this acquisition will improve our operations, especially customer service and driver efficiency. Users can continue to enjoy the Hugo app from the comfort of their mobile devices. The acquisition will not affect the company name, but rather boost our services with world-class resources and expertise,” said Hugo Jamaica's marketing manager Kandice Moncrieffe.
With more than 800 employees and 1.3 million registered users, Hugo offers multi-category marketplace services for food delivery, grocery delivery, pharmacy delivery and e-commerce, as well as on-demand and financial services.
Founded in 2017, Hugo is currently active in over 40 cities across six countries: Guatemala, El Salvador, Honduras, Nicaragua, the Dominican Republic, and Jamaica.
“I am very proud of the growth that our team has been able to achieve over the past four years. Because of our focus on local economic growth and social impact, Hugo has become the preferred app for many businesses, drivers and customers across the region.
“I am excited to join forces with Delivery Hero, one of the largest food delivery companies in the world, so that together we can expand our reach and continue delivering world-class experiences to our customers and partners throughout the region,” said Alejandro Argumedo, CEO and co-founder of Hugo.