Germany’s Delivery Hero has acquired a 5.09% stake in online dining competitor Deliveroo, raising its share price to its highest level since its listing on the stock market in March.
Dilriboru shares, which were announced on Monday’s stock market announcement, rose more than 6% to 345p. The price at the time of the initial public offering (IPO) was 390p.
Online food platforms such as Delivery Hero, Deliveroo, Uber (NYSE: UBER) Eats and Just Eat Takeaway.com have benefited from a surge in demand during pandemic lockdowns, but some analysts question how much of that business will persist as restaurants reopen.
A race into new markets and early moves towards consolidation has resulted in a number of cross-shareholdings in the sector.
Founded in 2011, Delivery Hero operates in about 50 countries worldwide, with particular strength in Asia, where it owns the foodpanda brand.
It does not operate in Britain – Deliveroo’s largest market – after selling its Hungryhouse business to Just Eat in 2016.
However, after later consolidation in Germany, it does own a 7.4% stake in Just Eat Takeaway.com.
It also owns a 37% stake in Spain’s Glovo, which is considering its own listing in about three years.