Delivery Hero posted the largest increase in large European stocks in the Stoxx 600 on Wednesday, rising 8% to nearly 100 euros. Since the ousting of Wirecard, Delivery Hero is also a component of the German Dax 40.
Investors appreciate the restructuring measures decided by the meal delivery man, which, quite surprisingly, involves a withdrawal, in his country of origin, Germany, of its Foodpanda brand from the six cities in which it had recently been established (Cologne, Düsseldorf, Frankfurt, Hamburg, Munich and Stuttgart) to keep only its innovation activities (new kitchen concepts, more sustainable packaging), grouped together near its head office in Berlin. In May, however, management had indicated that it wanted to reinvest in its domestic market.
Competition from Uber and DoorDash
On the other hand, Delivery Hero made the more radical choice to withdraw completely from the Japanese market by divesting its activities, which had just started, in September. If no buyer is found at the end of the research which will begin in the first quarter of 2022, the subsidiary will simply be closed.
Either way, Delivery Hero faces stiff competition. At the same time when the delivery man announced his intention to reinvest in his country, Uber, via its UberEats platform, declared for its part wanting to extend its services to Germany, just like DoorDash, number one on American soil.
JustEat joins forces with One Stop
Coincidence of the day, another meal delivery man, JustEat, posted the second highest rise in the session in the Stoxx 600, with a gain of nearly 5%. The Briton has reached an agreement with the chain of convenience stores One Stop, a subsidiary of the American Tesco, but which operates independently. It has about 900 stores, spread across England and Wales, and specializes in particular in groceries.
Through this partnership, JustEat will be able to offer customers products such as bread, milk, toiletries or snacks. The service is currently being launched through 40 stores, with the aim of subsequently being extended.