© Reuters. FILE PHOTO: The Delivery Hero headquarters is pictured in Berlin, Germany, June 2, 2017. REUTERS/Fabrizio Bensch/File Photo
2/2
LONDON (Reuters) – Germany’s Delivery Hero has taken a 5.09% stake in online food delivery rival Deliveroo, driving the British company’s share price to its highest since listing on the stock market in March.
Shares in Deliveroo, which disclosed the holding in a stock market notice on Monday, rose more than 6% to 345 pence. They were priced at 390 pence in its initial public offering (IPO).
Online food platforms such as Delivery Hero, Deliveroo, Uber (NYSE:) Eats and Just Eat Takeaway.com have benefited from a surge in demand during pandemic lockdowns, but some analysts question how much of that business will persist as restaurants reopen.
A race into new markets and early moves towards consolidation have resulted in a number of cross-shareholdings in the sector.
Founded in 2011, Delivery Hero operates in about 50 countries worldwide, with particular strength in Asia, where it owns the foodpanda brand.
It does not operate in Britain – Deliveroo’s largest market – after selling its Hungryhouse business to Just Eat in 2016.
However, after later consolidation in Germany, it does own a 7.4% stake in Just Eat Takeaway.com.
It also owns a 37% stake in Spain’s Glovo, which is considering its own listing in about three years.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Be the first to comment