Friday, 21 September 2018

Just Eat's shares fell 5.5% to 669.4p



Just Eat's share price has fallen to a one-year low following reports that Uber is in early-stage talks to buy rival UK food delivery firm Deliveroo.

 
Just Eat's shares fell 5.5% to 669.4p, the lowest since September last year.


Bloomberg reported that Uber was in discussions to buy Deliveroo for several billion dollars.


Uber declined to comment, while a Deliveroo spokesman said: "As a matter of policy we do not comment on speculation."


Paul Hickman, an analyst at Edison Investment Research, said a combination of Uber Eats and Deliveroo could create "a killer brand".
He said: "Uber has a comprehensive app-driven distribution system and an international reputation, while Deliveroo's business model encompasses ownership of the delivery function, unlike Just Eat which relies on restaurants' own delivery drivers."


Just Eat takes online orders from customers and acts as delivery middle man between them and restaurants.


But Ian Whittaker, media analyst at Liberum, said investors in Just Eat should be reasonably comfortable even if Uber did buy Deliveroo.


He said Just Eat had already grabbed a third of the UK food delivery market and "once you are a market leader and entrenched with customers, you are extremely hard to dislodge".





BBC            News.