London Daily

Focus on the big picture.
Saturday, Oct 18, 2025

Deliveroo ‘undervalued’ says boss of German rival behind £280million share buy-up

Deliveroo ‘undervalued’ says boss of German rival behind £280million share buy-up

SHARES in Deliveroo hit their highest level since its disastrous float today as it emerged a German rival has bought a 5% stake.

Berlin-based Delivery Hero now owns 87.4million Deliveroo shares, worth around £284 million.

The news sent Deliveroo’s stock almost 10% higher to 357p, and will fuel speculation about a possible tie-up between the two amid intensive consolidation in a sector where demand exploded in the pandemic.

Delivery Hero operates in 40 countries but not in Britain, where it sold its Hungryhouse business to Just Eat for £200 million in 2016.

Shares in Deliveroo, led by former banker Will Shu, floated in March at 390p but crashed to 230p amid investor worries about its dual-class share structure and workforce practices.

They have since begun to slowly recover, and are up 15% this month.

Analysts were not immediately certain of the motivation for the buy-up.

Giles Thorne at Jeffries said: “It is hard to say with conviction at this point what Delivery Hero’s intention is.”

A spokesman for Delivery Hero would only say: "Delivery Hero is always looking for new investment opportunities.

“We strongly believe in the future potential of the delivery industry as a whole, and therefore decided to purchase shares in one of the companies that is at its forefront."

Its co-founder and CEO Niklas Oestberg took to Twitter to explain he felt the company was oversold at its IPO and remains undervalued.

He said he had known Shu “for many years” and had a “huge respect for what he and his team have built,” adding that his group snapped up the bulk of its stake at 270p.

Oestberg wrote: “Company being oversold at IPO. We acquired our stake at an average EV of c. £3.6bn for a business with £6.6bn GTV runrate in Q1 (£7.0bn in Q2) at decent Gross Profit margin. Felt undervalued to us.

“We considered all possible scenarios back in April when we start acquiring our stake. In no scenario would this be a bad investment long term.”


Last month, JustEat Takeaway, which last year acquired GrubHub, came under fire from activist shareholder Cat Rock Capital, which claimed it was at risk of a hostile takeover unless it pursued a merger with a bigger rival.

Two rival groups - UberEats and DoorDash - are targeting Delivery Hero’s home market of Germany as a potential growth area as they seek to take advantage of expanding European demand.

Newsletter

Related Articles

0:00
0:00
Close
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
French Political Turmoil Elevates Marine Le Pen as Rassemblement National Poised for Power
China Unveils Sweeping Rare Earth Export Controls to Shield ‘National Security’
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
×