London Daily

Focus on the big picture.
Tuesday, Aug 25, 2026

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
German Broadcaster Goes Dark to Warn AfD Could End Its Saxony-Anhalt Service
Badenoch Plans Major Shadow Cabinet Reshuffle as Tories Struggle in Third Place
Turnbull Warns AUKUS Could Leave Australia Without Promised Nuclear Submarines
California Billionaires Pour More Than $150 Million Into Fight Over Proposed Wealth Tax
Premier League Season Opens With Managerial Debuts and Dramatic Early Fixtures
England Cricket Drops Brydon Carse From Selection Pending Club Investigation
Graeme Dott Convicted of Child Sexual Abuse Offences in Scotland
Protesters Occupy British Aircraft Parts Factory Over Alleged Military Links to Israel
More Than 100 Former British and French Diplomats Call for Sanctions on Israel
Ipsos Poll Shows British Public Split Between Immigration Controls and Economic Growth
British Cybersecurity Agencies Raise Alert Over Growing Threats to Critical Infrastructure
Two-Thirds of England Now Under Official Drought Conditions After Prolonged Summer Heat
Institute of Directors Calls for Urgent Action to Revive Britain’s Stagnant Labour Market
Andy Burnham Visits Kyiv on First Foreign Trip and Pledges Continued British Support for Ukraine
New Daily Diabetes and Weight-Loss Pill Launches in UK Pharmacies
UK Payroll Employment Falls by 94,000 as Labour Market Cools
Onshore Wind Planning Applications in England Reach Ten-Year High After Rules Eased
UK Government Demands Social Media Platforms Remove Dangerous Driving Content After A66 Crash
Thames Water Creditors Face Backlash Over Proposed Corporate Restructuring
Twelve Arrested After Fatal A66 Crash Linked to Organised Crime Investigation
UK Household Energy Debt Could Reach £7 Billion by Year-End
UK Defence Ministry to Use Ukraine Battlefield Data to Train AI Security Systems
UK Government Redirects £4 Billion of Affordable Homes Funding Away From Social Housing
UK Government Borrowing Reaches £1.8 Billion in July, Exceeding Forecasts
UK Prime Minister Andy Burnham Pledges Advanced Missile Support for Ukraine
8Bank of England Holds Interest Rate at 3.75% as Middle East Energy Risks Rise
Prime Minister Andy Burnham to Give Ukraine Classified Storm Shadow Blueprints for Domestic Missile Production
UK Graduate Job Vacancies Plunge 45% to Lowest Levels on Record
Government Audit Reveals Pressure on UK Hospitality From Business Rates and Rising Costs
Kindertransport Survivor Prepares to Revisit European Sites Linked to Her Family’s Wartime Separation
Northern England Transport Operators Strengthen Contingency Plans as Travel Demand Rises
New Implant Trials Offer Treatment Prospects for Patients With Refractory Angina
South Wales Reviews Wildfire Response After Exceptionally Dry Summer
UK Treasury Prepares Autumn Fiscal Statement Amid Spending and Defense Pressures
Norfolk Records First Wild Beaver Births in More Than Five Hundred Years
Historic Portrait of Benjamin Disraeli Reported Missing From Parliament’s Art Collection
Five People, Including Police Officers, Killed in A66 Crash as Families Pay Tribute
Most English Secondary Schools Found to Fall Short of National Healthy Food Standards
UK Think Tank Says Productivity Growth May Be Stronger Than Official Data Shows
Reform Party Proposes Lower Social Housing Priority for Foreign-Born UK Citizens
UK Government Plans Business Rate Overhaul to Ease Pressure on Pubs and Hotels
New Daily Diabetes and Weight-Loss Pill Launches Across NHS Pharmacies in England
UK Graduate Job Vacancies Fall to Lowest Level in a Decade
UK Prime Minister Andy Burnham Visits Kyiv to Reaffirm Long-Term Military Support for Ukraine
Iranian Hackers Shut Down British Power Plant for Four Days in Landmark Cyber Attack
Novak Djokovic Reveals Relentless Self-Doubt and Rejects Retirement in New Documentary
Trump Imposes 50% Tariffs on Canadian Goods After Bilateral Trade Talks Collapse
First Bus Bars Unaccompanied Under-Sixteens From Evening Services in Stoke-on-Trent
Lithium-Ion Battery Fires Cost UK Waste Sector About One Billion Pounds a Year
Reform UK Proposes Lower Social Housing Priority for Foreign-Born Naturalised Citizens
×