London Daily

Focus on the big picture.
Monday, Sep 21, 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
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
Ed Sheeran Tour Faces Backlash After Macklemore Is Removed Over Pro-Palestinian Remarks
Vandalism of Traffic Cameras Intensifies Across Parts of England
Nearly 300 Evacuated as Fire Hits Grand Burstin Hotel in Folkestone
King Charles Warns AI Executives About Risks From Uncontrolled Technology
Church of England Apologises for Role in Historical Forced Adoption Practices
UK Debate Over Online Speech Intensifies After Arrest Figures Draw Scrutiny
Oxfordshire Village Holds Symbolic Independence Vote Over Asylum Accommodation Plan
Nigel Farage and Richard Tice Sue National Crime Agency Over Alleged Banking Data Leaks
Apple Introduces Stricter Age Checks for UK Accounts
BBC Cash Reserves Fall 66% to £125 Million as Broadcaster Restructures
McLaren Announces £500 Million UK Investment and Plans 1,000 Jobs
Green Party Wins Historic Gorton and Denton By-Election as Labour Falls to Third
Burnham Government Prepares October Budget Under Growing Fiscal Pressure
UK Energy Suppliers Pull Fixed-Price Deals as Wholesale Markets Turn More Volatile
Bank of England Holds Rates at 3.75% as Middle East Energy Shock Raises Inflation Risks
Addison Lee Founder Loses £20 Million UK Tax Tribunal Case
BrewDog Creditors Face Losses on About £190 Million of Debt
Harrods Seeks to Recover Abuse Compensation Costs From Mohamed Al Fayed’s Estate
Ed Davey Targets Reform UK as Liberal Democrat Conference Opens
Great Britain Retail Sales Rise 0.5% in August
NHS England Approves Life-Extending Treatment for Incurable Breast Cancer
Proposals to Limit NHS ADHD Diagnoses Draw Criticism From Patient Groups
Resolution Foundation Warns of Housing Cost Crunch for Low-Income UK Families
BBC Cash Reserves Fall to Decade Low as Annual Deficit Reaches £121 Million
Millisecond Software Error Triggered Major UK Air Traffic Control Disruption
Twenty Women Underwent Unnecessary Mastectomies During NHS Cancer Care
Sensitive UK Police Data Found Vulnerable to Access by Foreign Actors
British Steel Faces Renewed Pressure for a Long-Term Financial Plan
MPs Urge Government to End Thames Water Restructuring Talks With U.S. Hedge Funds
Andy Burnham Warns of Difficult UK Budget Choices as Inflation Returns to 3.1%
England Tightens School Food Standards With Restrictions on Deep-Fried and High-Sugar Foods
Oxfordshire Village Votes Symbolically to Leave UK Over Proposed Asylum Centre
Michael Marra Elected Leader of Scottish Labour
BBC Cash Reserves Fall Sharply as Financial Pressures Mount
George Osborne Calls for UK to Rejoin EU Customs Union
×