Deliveroo got a boost from Delivery Hero

Deliveroo got a boost from Delivery Hero

The company’s share price reached its highest point after announcing a deal

Delivery Hero – the German rival of Deliveroo – acquired a 5.09% stake in the latter, pushing its shares up more than 10%. The London-headquartered Deliveroo and Berlin-based Delivery Hero are two of the largest food delivery companies in Europe. After the announcement, Deliveroo’s stock climbed to £4.66 on early trading on the London Stock Exchange, reaching its highest point since it became a publicly traded company in March.

Boasting a market cap of around $35 billion, Delivery Hero also holds minority stakes in other food delivery companies, including Glovo, Just Eat Takeaway, Rappi and Zomato. According to estimates and considering Deliveroo’s £8 billion market value, Hero’s investment in the first appears to be roughly £402 million.

Delivery Hero competes with Deliveroo in the Middle East through its Talabat business, while in Hong Kong and Singapore via its Foodpanda division.

Delivery Hero’s investments come at a time of consolidation in the food delivery market.

At the moment of writing, Deliveroo is trading 7.78% higher.

Sources: cnbc.com, finance.yahoo.com

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