Delivery Hero, the German owned food delivery platform joins Amazon as a shareholder of Deliveroo after acquiring a 5.1% stake in the UK food delivery company, helping to drive Deliveroo’s share price up 14% to its highest level since listing on the stock market.
Deliveroo floated at the end of March with a value of £7.6 billion but fell by 30% on the first day of trading and hit a low of 228p amid fears over the sustainability of its business model and concerns over the legal status of its riders.
The share price has since recovered on the back of a victory in the fight for its riders to be recognised as self-employed as well as a strong second-quarter trading update.
The news of Delivery Hero’s 5% stake comes ahead of Deliveroo’s half year results which are due tomorrow.
Niklas Östberg, the Delivery Hero chief executive and co-founder, said he had “huge respect” for Deliveroo, opining that the company had been “oversold at IPO”.
Delivery Hero has a track record of acquiring a stake in other delivery companies. Currently it owns a 7.4% stake in Just Eat Takeaway and 37% of Glovo, a food delivery platform in Spain.
Delivery Hero was founded in 2011 and sold its UK business, Hungryhouse, to Just Eat in 2018 for £240 million.
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Delivery Hero acquires a 5% stake in Deliveroo
Delivery Hero, the German owned food delivery platform, has joined Amazon as a shareholder of Deliveroo, after acquiring a 5.1% stake in the UK food delivery company. The news helped drive Deliveroo’s share price up 14% to its highest level since listing on the stock market. It comes ahead of Deliveroo’s half year results which are due tomorrow.
