London Daily

Focus on the big picture.
Sunday, Jul 05, 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
NHS Maternity Reform Expands Central Oversight After Critical National Review
Dover Border Warnings Highlight Post-Brexit Pressure on Cross-Channel Trade
Private Nuclear Consortium Advances £35 Billion Small Reactor Strategy in UK
UK Labour Leadership Signals Shift Toward Reindustrialisation and Regional Power
House of Lords Debates Rail Nationalisation Bill to Create Great British Railways
Scottish Affairs Committee Expands Inquiry Into SNP Financial Conduct
Evri Launches £1.2 Million Defamation Case Against BBC Over Panorama Investigation
Port of Dover Warns of Border Delays as EU Entry-Exit System Looms
Nigel Farage Referred to Standards Watchdog Over Alleged Undeclared Benefits
UK Government Faces Scrutiny Over Claimed AI Datacentre Investment After FOI Findings
UK and India Finalise Trade Agreement Rules Ahead of Mid-July Implementation
UK Government Establishes National Maternity Commissioner After Major Review of NHS Care Failures
Private Consortium Plans £35 Billion UK Nuclear Programme Targeting Small Modular Reactor Rollout
Andy Burnham Sets Out Ten-Year Reindustrialisation and Devolution Plan as Leadership Transition to UK Premiership Advances
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Royal Society Exhibition Highlights Growing Focus on Public Trust in Science
Energy Costs and Supply Chain Risks Continue to Shape UK Business Strategy
Rapid Rise in Artificial Intelligence Adoption Reshapes UK Corporate Operations, ONS Says
UK Businesses Turn Defensive as Economic Outlook Weakens, Institute of Directors Data Shows
UK Government Faces Criticism Over Late Extension of Pub Hours for England Match
Inquest Continues Into Death of Noah Donohoe as Jury Deliberates Findings
Calls for Stronger Wildlife Attraction Safety Rules After Crocodile Enclosure Injury
City Fire Under Control After Major Blaze Sends Smoke Across Urban Area
Police Investigation Continues After Officer Killed During Road Closure Duties
Blackpool Hotel Fined £120,000 After Electric Shock Incident Involving Child
Whistleblowers Allege Delays in UK Special Educational Needs Support Services
Calls Grow for Improved Support for UK Armed Forces Personnel Facing Health Conditions
Rising UK Energy Price Cap Increase Prompts Wider Concerns Over Household Pressures
UK Businesses Remain Concerned Over Global Conflict Risks to Supply Chains, ONS Finds
Office for National Statistics Reports Rising Adoption of Artificial Intelligence Across UK Businesses
Institute of Directors Reports Deepening Pessimism in UK Business Confidence Index
England Prepare for World Cup Round of 16 Match Against Mexico in Mexico City
Royal Society Summer Science Exhibition Concludes in London After Week-Long Showcase of Research
Silverstone Hosts British Grand Prix as Lando Norris and Lewis Hamilton Lead Home Crowd Expectations
Cornwall Van Dwellers Face Homelessness Risk as Council Tightens Enforcement
Police Investigate Stabbing of Iranian Journalist in London
Rare Copy of US Declaration of Independence Discovered in UK Archive
Department for Education Data Shows Persistent Literacy Gap Among Disadvantaged White Pupils
×