London Daily

Focus on the big picture.
Friday, Jul 10, 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
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
UK Energy Strategy Focuses on Storage and Offshore Wind to Support Renewable Transition
Regional Governments Gain Greater Role in Britain’s Infrastructure and Economic Strategy
Britain Strengthens Technology Sovereignty Through Tougher Artificial Intelligence Competition Rules
UK Government Expands Artificial Intelligence Use Across Public Services Despite Privacy Debate
UK Universities Warn of Financial Pressure After Sharp Fall in International Student Enrolment
Welsh Government Completes Rail Nationalisation With One Point Five Billion Pound Modernisation Plan
Northern Ireland Records Export Growth as Companies Benefit From Dual UK and EU Market Access
Greater Manchester Launches Two Billion Pound Plan to Convert Empty Commercial Sites Into Housing
National Grid Connects Europe’s Largest Battery Storage Facility in Yorkshire
UK Defence Ministry Plans Royal Navy Autonomous Fleet Deployment to Indo-Pacific
Scotland Approves Europe’s Largest Floating Offshore Wind Project Near Aberdeen
Competition and Markets Authority Blocks Forty Billion Pound Technology Deal Over AI Security Concerns
UK Launches Five Hundred Million Pound Artificial Intelligence Network for National Health Service Diagnostics
Bank of England Signals Possible Interest Rate Cuts After Inflation Falls Below Target
UK Government Unveils Major Wealth Tax Reform to Fund National Health Service Infrastructure Expansion
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Barclays and PwC Report Examines Economic Opportunities from Financial Asset Tokenisation
Pound Sterling Strengthens as Investors Anticipate Further Bank of England Rate Increases
British Business Bank Invests Twenty-Seven Million Pounds in Kraken Technology Defence Expansion
UK Business Secretary Peter Kyle Backs State Investment Strategy Inspired by US Approach
UK Electricity System Issues Margin Notice as Heatwave Tightens Evening Supply Outlook
Labour Leadership Contest Opens as Andy Burnham Emerges as Expected Sole Candidate
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Rare Early Copy of US Declaration of Independence Found in British Archive
Cornish Language Revival Gains Momentum Through Schools and Community Programs
UK Authorities Face Criticism Over Prisoner Early Release Safeguards
Clacton By-Election Set After Nigel Farage Resigns Seat to Trigger Contest
Government Agencies Review Long-Term Fiscal Risks from Aging Population and Low Productivity
UK Heatwaves Expose Pressure on Public Transport and Housing Infrastructure
UK Government Prepares Welfare Review Amid Debate Over Personal Independence Payment Reform
UK Government Expands Rapid Endometriosis Testing Across NHS Services
Vistry Group Issues Profit Warning as UK Housing Market Faces Continued Pressure
Virgin Media Receives Record Twenty-Eight Million Pound Fine Over Contract Cancellation Failures
Office for Budget Responsibility Warns UK Public Finances Face Long-Term Pressure
UK Watchdog Warns Regional Income Gap Has Barely Narrowed in Three Decades
IMF Raises United Kingdom Growth Forecast as Inflation and Energy Pressures Ease
UK Government Launches Regulatory Reform Bill to Speed Up Commercialization of Innovation
Prince Harry Loses Privacy Lawsuit Against Daily Mail Publisher After High Court Rejects Claims
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
Jet2 Reports Strong Summer Travel Demand as Bookings Rise Seven Percent
×