U.K. Food Delivery Company Deliveroo Shares Have Risen

(AmericanProsperity.com) – Deliveroo, a United Kingdom food delivery company, shares have risen after reports that the United States rival Doordash has discussed a takeover with the business. Analysts have said other bidders could come forward in the next few weeks.

Doordash spoke of a takeover of Deliveroo last month, but the conversation ended because the two sides couldn’t agree on the value of the deal. After this, the share price jumped up by six percent and then rose nearly four percent following that.

Analysts at the financial services company Jefferies said, “In this instance, the talks have failed. But such is the strength of the financial, industrial, and strategic logic of a Deliveroo takeover, we would not be surprised to see similar headlines re-emerge in the short term.”

“In our view, the key to unlocking a recommended offer from Deliveroo is understanding the sensibilities of the founder CEO, Will Shu. This may only be the start.”

Deliveroo thrived during the pandemic as people continued to order delivery, but when the pandemic was over, the demand for these delivery services slowed. Amazon started investing in Deliveroo in 2019 and is now its largest shareholder with a thirteen percent stake in the company. Cayman Islands-based venture capital firm DST Global is the second biggest stakeholder. Amazon was previously said to possibly be a Deliveroo buyer, but that may not be the case anymore.

Deliveroo was under criticism for the treatment of its delivery riders since they’re not employed directly by the company but instead, they are paid by each delivery.

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