Deliveroo hasn’t exactly had the easiest ride since its IPO back in March, and today German competitor Delivery Hero purchased a 5.09% stake in the company.
With restaurants and the world as a whole beginning to reopen, the dominance of home delivery services are up in the air, and providers such as Delivery Hero, Deliveroo, Uber Eats, etc. are both racing into new markets as fast as they can, and beginning the process of devouring each other.
Not active in Deliveroo’s biggest market, the UK, Delivery Hero sold off its Hungryhouse brand to Just Eat in 2016. However, as Reuters reports, “after later consolidation in Germany, it does own a 7.4% stake in Just Eat Takeaway.com.” So, a slice of the pie, just not a participant at the pie-eating table.
And another fun one, not 3 months prior, Spain’s Glovo snapped up three of Delivery Hero’s brands in Eastern Europe. However, Delivery Hero, in turn, owns a 37% stake in Glovo.
If you’re following all of these, “who owns how much of who and where” cross-shareholdings, you’re doing better than most; but one thing is for sure, the buying sprees aren’t going to slow down any time soon. Investors have ponied up quite a bit of money in the sector, and are expected a return. The days of some quite cutthroat moves might be soon upon us.
Meanwhile, I'll have mine medium-rare, with extra mushrooms, ketchup, and mustard, please.