AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.jpg)
Summary
- Delivery Hero snapped up a 5.09 per cent stake in the online food delivery competitor Deliveroo.
- Post-acquisition, Delivery Hero currently owns about 87.4 million Deliveroo shares.
- Deliveroo recorded a 76 per cent year-on-year growth in its gross transaction value in Q2 2021 to £1,739 million.
Shares of LSE’s new entrant Deliveroo (LON: ROO) has surged today after the announcement that the Berlin-based European multinational online food-delivery service Delivery Hero (LON:0RTC) snapped up a 5.09 per cent stake in the online food delivery competitor. Post-acquisition, Delivery Hero currently owns about 87.4 million Deliveroo shares.
The shares of Deliveroo are trading in green at GBX 355.50, up by 9.35 per cent, as of 10:12 on 09 August 2021. Deliveroo’s market capitalisation stood at £5,579.74 million. Shares of the company were offered at 390 pence in its initial public offering (IPO).
Pandemic drives the popularity of on-demand food delivery services
The acquisition is a part of Delivery Hero’s strategy to capture new markets and leverage the growing demand for online food delivery. The race to capture newer markets and early moves aimed at consolidation have increased the number of cross-shareholdings in the online delivery sector.
The popularity of online food platforms such as Deliveroo, Delivery Hero, Just Eat Takeaway.com (LON: JET), and Uber Eats was bolstered during the pandemic. However, industry analysts remain divided about how long online food platforms will continue to stay popular after restaurants open and lockdown restrictions eased.
Copyright © 2021 Kalkine Media
The target
Deliveroo announced plans to expand to Waterford later this month. The company registered a strong 50 per cent surge in the number of registered restaurants on its delivery platform ever since the pandemic begin.
London-based Deliveroo operates in over 500 cities and towns across 12 markets and employs more than 1,000 self-employed riders. The company partnered with grocery giant Aldi for grocery deliveries to an estimated 1.5 million shoppers. It also inked similar on-demand collaborations with Londis, Fallon and Byrne, Spar, and Mace. Deliveroo recorded a 76 per cent year-on-year growth in its gross transaction value in Q2 2021 to £1,739 million. The total number of orders grew 88 per cent year-on-year to 78 million in Q2 2021.
The acquirer
Delivery Hero operates in about 50 countries globally. In Asia, the company owns the brand Foodpanda, while in Spain-based Glovo it owns a 37 per cent stake However, it had no operations in the UK after its sold its Hungryhouse business five year back in 2016 to Just Eat. Later after consolidation in Germany, it owns a 7.4 per cent stake in Just Eat Takeaway.com.
