Speculation of DoorDash bid boosts Deliveroo stock, but industry faces increased competition

From Morningstar: 2024-06-26 20:15:00

Shares in UK food delivery stock Deliveroo (ROO) surged amid speculation of a bid by US rival DoorDash. No deal was made but potential for other bidders shook up valuations in the European sector. Analysts predict more competitive pressure in the industry, with DoorDash possibly making a move into the European markets.

Delivery Hero and Just Eat Takeaway also face pressure despite DoorDash bid not materializing. Analysts anticipate cross-border M&A in the food delivery sector in 2024. The cost-of-living crisis and reopening of restaurants have impacted demand, with share prices fluctuating.

Delivery Hero and Just Eat Takeaway shares have declined recently, while the food delivery sector faced volatility due to changing consumer habits post-pandemic. Deliveroo’s share price fell after its IPO and is now showing signs of recovery. Morningstar ratings indicate undervaluation in some stocks.



Read more at Morningstar: Food Delivery Stocks Shaken Up By DoorDash Move